BP says no asset sales in S.Africa, Mozambique

JOHANNESBURG (BestGrowthStock) – BP said on Monday it had no intention to sell assets in South Africa and Mozambique and would spend $90 million 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 $30 billion of non-core assets to pay for the clean-up of the U.S.’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 center 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.

(Reporting by Tiisetso Motsoeneng; Editing by Will Waterman)

BP says no asset sales in S.Africa, Mozambique