BRISBANE, Australia, March 13 (UPI) -- British energy company BP said Friday it sold off its bitumen assets in Australia to Puma Energy, a company it said was better suited for the business.
For an undisclosed sum, BP said it sold its small-scale bitumen operations to Puma Energy, which has headquarters in Singapore, in order to refocus its efforts on downstream operations in Australia. Part of that expansion includes an upgrade to its network of retail fueling stations across the country.
"We have decided that it is in the long-term interests of the bitumen business and its employees for it to be owned by another company who is better placed to invest in its future," BP's regional president, Andy Holmes, said in a statement.
Puma is one of the largest bitumen traders in the world, operating through a vast network of fleets to carry the heavier grade of crude oil. The company said the acquisition from BP will help streamline a business in Australia that's going through a transition toward an increased reliance on imports.
BP said its decision, in turn, helps it refocus on downstream operations in Australia, which includes a refinery in Western Australia.
About 35 people worked in BP's bitumen operations in Australia. The divestment comes as the company works to overhaul global operations in the era of low oil prices.
The oil major last month reported a replacement cost loss during the fourth quarter of $968 million, compared with a profit of $1.5 billion during the same period last year. Replacement cost is similar to net income reported by the British company's U.S. counterparts.
"In order to build a leading competitive position, we will continue to make changes to our business across Australia and New Zealand," Holmes said.
