BP, Caltex plan tie-up

BP, Caltex plan tie-up

MELBOURNE (AFP): The Australian arm of British Petroleum said
on Monday it was in discussions on a possible joint venture with
Caltex Australia Ltd to jointly operate their oil refineries in
the country.

BP Australia Ltd and Caltex said in a joint statement that
they were in "detailed discussions" on building a joint venture
that would reduce the costs of operating their four refineries.

"The companies believe that for the future of their Australian
refining businesses it is important that efficiencies be achieved
by their proposed joint venture to meet intense regional and
domestic competition," they said.

The joint venture would include the companies' oil supply and
shipping functions, the companies said, but would not include the
final selling or marketing of petroleum products.