BP Sells Austrian Mobility Business, Finalizes Redevelopment Deal For Kirkuk Fields In Iraq

BP p.l.c. BP disclosed on Thursday that it plans to sell its mobility and convenience business in Austria for an undisclosed amount.

The sale includes more than 260 BP retail sites across Austria (around 120 company-owned) and related Austrian fleet business and EV charging assets, including those under development.

It also comprises BP’s shares in the non-operated joint venture (NOJV) managing the Linz fuel terminal.

The sale process will commence immediately, with completion targeted by the end of 2025, pending regulatory and necessary approvals.

This move is part of BP’s ongoing strategy to reshape and streamline its downstream operations, following its announcement last year to market its mobility & convenience business in the Netherlands.

Emma Delaney, EVP, customers & products at bp said, "Over recent years we have grown the business to become number two major branded retailer in the market. As bp now looks to focus downstream and reshape our portfolio, we believe that a new owner will be best placed to unlock the business's full potential.”

Also, on Wednesday, BP disclosed that it received final government approval for its contract to redevelop several major oil fields in Kirkuk, northern Iraq.

The agreement with North Oil Company (NOC) and North Gas Company (NGC) covers the rehabilitation of fields, including oil, gas, power and water sectors, with the potential for exploration investment.

Under the agreement, BP’s compensation will be tied to increases in production volumes, prices and costs.

Also, BP will be entitled to a share of production and reserves in proportion to the fees earned from boosting output.

With full approval now in place, BP will collaborate with the Government to establish a new operator, an unincorporated organization primarily staffed by personnel from NOC and NGC, along with secondees from BP, to begin the initial stages of development.

The agreement covers an initial phase involving oil and gas production exceeding 3 billion barrels of oil equivalent, including the Baba and Avanah domes of the Kirkuk oil field, as well as the Bai Hassan, Jambur and Khabbaz fields, all currently operated by NOC.

The total resource opportunity across the contract and surrounding areas is estimated at up to 20 billion barrels of oil equivalent.

Investors can gain exposure to the stock via Texas Capital Texas Oil Index ETF OILT and Precidian ETFs Trust BP plc ADRhedged BPH.

Price Action: BP shares are up 0.17% at $34.48 premarket at the last check on Thursday.

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