British Petroleum leaving Turkey: Petrol Ofisi to acquire BP’s fuel operations
Petrol Ofisi Group has announced that it has signed a share purchase agreement to acquire BP’s fuel operations in Turkey. The official statement reveals a significant development following discussions between the Petrol Ofisi Group and the UK-based oil giant BP during the summer months.
Chris Bake, a board member of Vitol, the main shareholder of the Petrol Ofisi Group, made the following statement regarding the matter:
“We are very pleased to take this step that will further strengthen the pride of the Turkish energy sector, Petrol Ofisi Group. Our confidence in Turkey’s future is complete, given its young and dynamic population and growth potential.”
Mehmet Abbasoğlu, CEO of the Petrol Ofisi Group, also expressed excitement about the promising partnership that will further solidify their position in the market, saying, “We eagerly await the completion of this exciting union that will strengthen our position in the market and the addition of new team members.”
The sale, subject to the approval of the Competition Authority, is expected to be completed in 2024.
BP has been operating in the country since 1912 and now has 770 fuel stations in Turkey. Its operations will now be taken over by Petrol Ofisi Group. The latter, currently having 1,935 stations, will have a total of 2,705 stations nationwide after the acquisition.
WHY IS BP LEAVING TURKEY?
As expressed by some experts in the sector, “One of the most significant reasons behind BP’s decision to withdraw from the market by transferring its existing assets to Petrol Ofisi (PO) is likely the high operational costs and the company’s appetite for the Turkish market. Among various strategic decisions made by BP’s global management, pulling out of the fuel distribution sector in inefficient locations to focus on alternative energy sources could be one of the reasons.”
It should not be surprising if other companies making similar decisions in the future, opting to withdraw from the fuel distribution sector in Turkey, find it inefficient for their business.
One thing that must be emphasized is that the decisions of these companies are purely commercial and not political, regardless of any circumstances.
This said, several other opinion leaders and experts in the sector share different views regarding the issue. They note that some withdrawals from Turkey has to do with lack of confidence in the current management practices and shortcomings in implementation of rule of law in the country, currently.
