BP Australia has agreed to renew its state agreement with the government of Western Australia for a further 30 years.
The renewal, which is subject to WA parliamentary approval, will ensure the ongoing operation of the company’s oil refinery in Kwinana south of Perth.
BP says it has earmarked $80 million (Aus.) in planned maintenance and investment activities at the refinery in a bid to provide competitively priced fuels across Australia.
The company has also invested in its fuels retail business in Australia, including the opening of new retail sites and truck stops and the refreshment of existing sites.
Kwinana refinery employs more than 700 people and supplies more than 6 million tonnes/year of fuel to Western Australia, South Australia, and Tasmania.
It has invested about $150 million a year in its retail fuels business.
The renewal agreement has been introduced to the Western Australian parliament as a bill with modernized terms, including a focus of ensuring local businesses continue to have access to supply chain opportunities generated by the refinery.
The existing Agreement Act of 1952 was due to expire in 2020.
Kwinana refinery came on line in 1954 pre-Bass Strait discoveries and was originally designed to process heavy Middle East crudes as well as bunker fuels for the port of Fremantle.