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BP in Mozambique

BP Mozambique is a supply and marketing business incorporated within the Fuels Southern African business.  

The business comprises retail, commercial, aviation and lubes in addition to being a terminal provider for third party marketers in Mozambique, IST and third party overland traders who supply into East Africa. The Terminals are operated by SAMCOL, a 50-50 Joint venture with Total Mozambique 

The terminals in Mozambique are the key enablers to capturing current and future sources of value in Mozambique and the surrounding countries of East Africa.  The current terminal capacity is unable to meet the needs of the business today and the growth opportunities of tomorrow.

History


BP began operating in Mozambique in the 1920’s as a BP-Shell partnership, under BP management. In 1978, Shell left Mozambique and BP took over its assets and customers; since then the company has operated with a 100% shareholding.

Despite a number of political and social challenges over the years, BP has remained committed to Mozambique.


Energy sector in Mozambique

Due to its unique geographical location, Mozambique is a natural entry and exit point for neighbouring countries such as Zambia, Malawi and Zimbabwe. It will be able to function as a gateway for energy supply to its land-locked neighbours. 

Mozambique’s natural resources are largely unexplored and exploration efforts had been constrained by the civil war and poor infrastructure. The Mozambique government’s dedication to large scale development in infrastructure such as ports and transportation networks has made Mozambique a more attractive option for foreign investments.

Mozambique is heavily dependent on its aluminum production and coal exports which accounts for 1/3 of its total exports. As a result, Mozambique’s growth is vulnerable to volatile aluminum and coal price changes. Mozambique’s Mineral Industry is set to experience strong growth as companies increase their mining activity in the country. Hence, demand for consistent energy to fuel the energy hungry mining industry is expected to increase over the next few years.

Gas production in Mozambique is set to increase as more international partners are sought by the country to explore its gas-rich land, with the latest discovery in the Rovuma Basin. Demand for Gasoil/ Diesel will increase due to increased activities in the waters at Rovuma Basin if the drilling and extraction is successful.

Regulatory Environment

 

BP Mozambique operates in a regulated environment — product procurement in Mozambique is regulated and so are prices, with the exception of Jet-A1. Procurement is conducted by IMOPETRO twice per year and supplies can vary from traders and multinational oil companies.

 

BP’s operations in Mozambique

 

Following a divestment programme in Africa as a result of the Etana Review last year, R&M decided to retain the three Mozambique Costal terminals (Beira, Matola and Nacala). In 2017 BP Mozambique entered in a JV with Total Mozambique, and the Terminals are operated by a NOJV.These three terminals will be key enablers for IST Eastern Hemisphere in East Africa as access to Mozambique storage generates high margin ex-tank business, enables competitiveness/appetite for East and Central Africa tender business, offers east west supply optionality and informs the East-West market call.


Our people and partners – to be updatedThere are around 115 BP Mozambique employees, most of whom work in the Maputo Office, Beira and Nacala Terminals, and others at the airfields all over the country. All of them are locals, but occasionally we hire expertise from elsewhere in the region.

 

Our people and partners 

 

There are around 115 BP Mozambique employees, most of whom work in the Maputo Office, Beira and Nacala Terminals, and others at the airfields all over the country. All of them are locals, but occasionally we hire expertise from elsewhere in the region.


 

 BP Southern Africa

BP has operated in Africa for over 80 years, pursuing a range of interests from oil and gas exploration, crude oil importation and refining to the distribution and marketing of gas and refined products through BP Ultimate, AirBP, BP Marine and Castrol.

After exiting 5 African countries in 2011, BP continues to invest significantly in South Africa and Mozambique which are viewed as key growth markets for the group. The head office for BP Southern Africa is based in Parktown, Johannesburg. 


The Core BP Brands in clude:

  • BP Ultimate fuels
  • Wild Bean Café
  • Pick n Pay Express
  • BP Express

International businesses

Air BP – operations in Southern Africa/Africa including airports they operate
As the aviation division of BP,  Air BP is one of the world’s leading suppliers of aviation fuel products and services. Air BP currently supplies commercial, general and military aviation customers at nine locations in South Africa. This includes Air BP’s operations at both OR Tambo International and Cape Town International. 

Air BP’s technical services offer is a complete aviation fuel consultancy service tailored to customers’ individual requirements. It includes a range of innovative technical services for airports including the design, build and operation of fuelling facilities to help customers protect their operations and manage risk.

Air BP is currently providing technical service agreements to customers in 13 African countries including South Africa, Mozambique, Madagascar and Egypt. Through the offer, Air BP has helped customers like Marvalene International Airport, Mozambique design and develop a new fuel system and into-plane operations, as well as developing bespoke training and inspection services for Vivo Energy in Ghana, Ivory Coast, Senegal, Morocco, Kenya, Uganda, Cape Verde and Mauritius.

BP Marine operations in SA


Castrol operations in SA and Africa

 


Convenience Offering

BP’s convenience outlets provide a unique offering through BP Express, Wild Bean Café and Pick ‘n Pay Express. Wild Bean Café is so successful that it sells two million cups of coffee a year (the WBC global average is 100 cups per store per day). The BP South Africa Wild Bean Café brand is among the top three in terms of profitability for the international Wild Bean Café market. 

BPSA and Pick ‘n Pay signed a formal agreement in April 2012 for BP Express stores to be converted to Pick ‘n Pay Express stores, which is aligned with BPSA’s growth and investment plans over the next few years. To date there are [......] Pick n Pay Express nationally.

BPSA and Pick n Pay extended their partnership in November 2018 with the launch of  the Smart Shopper Loyalty Programme.

Refining Business