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.