According to the reports which we cite below, BP is selling off its stake in United Kingdom Oil Pipeline (UKOP) and four of its UK-based fuel storage terminals. BP co-owns UKOP with Total of France, Valero of US and Royal Dutch Shell as a part of a consortium.
The four UK-based storage terminals that BP is selling are the units at Northampton, Hamble and Belfast along with the Kingsbury terminal, in which it has a 50% stake. All these terminals store jet fuel, diesel and petrol. The sales will leave BP with just two such sites.
This shake-up of operations is expected to affect around 350 jobs. BP hopes that the staff of the terminals they are selling will be given employment by the new owners of the sites. So far, BP has entered into a deal with the logistics company Hoyer for handling its operations of fuel transport. Because of this agreement, around 280 staff members of BP, performing key logistics roles including drivers, will be transferred to Hoyer.
This overhaul is the result of a sustained drop in the oil price due to which many companies are selling assets and cutting costs. BP witnessed a $6.5 billion loss in February, which is its biggest ever annual loss. To cope with the continued low price oil environment, they have decided to cut thousands of jobs.
“We regularly carry out strategic reviews of our operations and these decisions ensure that we remain focused on our core activities while our customers benefit from improved efficiency,” says a spokesperson for the company.