BP says no asset sales in SA

Johannesburg - BP said on Monday it had no intention to sell assets in South Africa and Mozambique and would spend $90m here next year on fuel terminals and to boost safety and rebuild its reputation.

The British-based oil major's image was tarnished by the devastating Gulf of Mexico oil leak earlier in the year, which drew criticism that it needed to put more emphasis on safety.

It has committed to selling up to $30bn of non-core assets to pay for the clean-up of the US's worst-ever oil spill.

"South Africa is an important market for us. There's no intention to sell any more assets; in fact, next year we will spend about $90 million," BP's Chief Operating Officer for the eastern hemisphere, Tufan Erginbilgic, told Reuters at the launch of the oil giant's global fuel technology centre in Johannesburg.

Erginbilgic said the bulk of the cash would be spent in South Africa, where it refines fuel.

BP said earlier this year it would sell its marketing businesses in Namibia, Malawi, Tanzania, Zambia and Botswana, but said Mozambique and South Africa offered better synergies with its supply portfolio.

Earlier on Monday it announced it would sell four fields in the Gulf of Mexico.

On Monday BP unveiled a R40m Fuels Technology Centre in Kyalami, Johannesburg.
 
BP said it aimed to boost its ability to provide differentiated fuels in the South African market. The new facility is only one of four world-wide.
    
Speaking at the launch, Sipho Maseko, CEO of BP Southern Africa said: "We want SA consumers to have access to BP's best available fuel technology and the centre will ensure that the fuels developed for the local market remain unparalleled in quality and performance.

"It will also help deliver capable fuel scientists and technologists to work in this highly specialised field and provide unique opportunities for industry to work closer with academic institutions and motoring bodies, such as the National Association of
Automobile Manufacturers of South Africa," he said.