LONDON -- BP intends to focus on optimizing and streamlining its downstream operations as it remains cautious on investing in new refining facilities, Tufan Erginbilgic, head of downstream for the company, told Reuters.
As part of the company’s strategy, BP intends to generate cash flow by expanding its group of fuel stations with high-end convenience stores, while at the same time modernizing existing refining plants.
In addition to its existing c-store markets like the U.K., Germany and Australia, Erginbilgic believes that BP's c-store model could be expanded to markets like Mexico, Indonesia, China and India.
The growth strategy comes as BP idles development of any new refining facilities, even as its oil production grows.
Erginbilgic says that BP is happy with its current refining portfolio, but could potentially unload some downstream assets as part of the new strategy. “We will sell one or two assets, making very good money today because the tide went up for these assets,” he said.
The strategy is part of Erginbilgic’s initiative to increase free cash flow by $3 billion by 2021.
In the United States, BP owns and operates 980 convenience stores in Arizona, California, Nevada, Oregon and Washington, making it No. 8 on CSP's Top 202 list of the largest c-store chains in the country.
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