BP has agreed to sell, subject to the necessary regulatory approvals, its retail network of 70 service stations and other inland fuels businesses in the Republic of Cyprus to Hellenic Petroleum.
The sale excludes BP’s international businesses Air BP and BP Marine, and BP Lubricants. Financial details of the sale are not being disclosed.
The businesses sold to Hellenic Petroleum include an inland direct and wholesaling fuels business, an LPG storage and bottling plant and a 65 per cent shareholding in the Superlube lubricants blending plant. The net value of the assets involved in the sale was £14 million as of December 2001.
The decision to sell is said to be the result of BP’s ongoing review of its global portfolio, which concluded that the retail and other inland fuels businesses in Cyprus would have more longer term value to a company wishing to establish a significant position in the Cyprus fuels market.
Hellenic Petroleum is 67.8 per cent owned by the Greek state and is the largest Greek refiner, owning 50 per cent of Greece’s refining capacity through two refineries – Aspropyrgos and Thessaloniki – and also a majority stake in the Skopje refinery.
Hellenic Petroleum has a 23 per cent share of the Greek retail market through the EKO brand and is the leading integrated oil company in Greece. It also has a presence in Albania, Montenegro and Georgia through marketing subsidiaries.
The shares of BP Cyprus Limited will transfer to Hellenic Petroleum together with around 40 members of staff, under local rules and regulations and existing terms and conditions of employment.
Air BP, BP Marine and BP Lubricants are independent businesses which will be largely unaffected by the sale and will continue their activities in Cyprus under the new name, BP Eastern Mediterranean Ltd, a wholly-owned subsidiary of BP.