BP will close Bulwer Island refinery with 350 jobs to go

BP WILL close its Bulwer Island refinery in Brisbane, resulting in 350 job losses.

BP will close its refinery Bulwer Island at Pinkenba.

BP AUSTRALASIA will close its Bulwer Island refinery in Brisbane, resulting in job losses.

The refinery employs 350 people.

The company will halt production at the Bulwer Island plant by mid-2015.

“While this decision will significantly improve our competitive position, it will result in job losses,” BP Australasia president Andy Holmes told reporters in Melbourne on Wednesday.

“I would like to acknowledge the enormous commitment and contribution made over many years by our staff at Bulwer Island. “We will be doing everything we can to support them through this transition.” The plant’s staff numbers will fall from about 380 to 25, Mr Holmes said.

About 300 contractors may also be affected.

The main reason for the Bulwer closure is the competition coming from the rise of large refineries in Asia that have lower cost bases.

The BP refinery at Bulwer Island.

Tim Wall, the managing director of the Bulwer Island refinery, said it was a sad day for all of the plant’s staff.

“We will be putting measures in place to assist our affected employees, including transitional support and job placement assistance,” he said.

“Given the quality of our people, I’m confident that those who choose to look for alternative employment will be highly regarded by employers in this area.” BP said the closure was in response to the growth of large refineries in Asia, which was causing structural change in Australia’s fuel supply chain.

By scaling back refining operations, BP would be able to strengthen its position in the east coast retail and commercial fuel markets, it said.

The company will make up its shortfall in refined oil products by increasing imports.

BP’s announcement on Wednesday follows Royal Dutch Shell’s recent decision to sell its Australian refining and marketing operations, including its Geelong refinery, to Vitol for $2.9 billion.

Caltex is also scaling back its refining operations, with plans to close it Sydney refinery in the second half of 2014 and convert it to an import terminal.

Caltex still operates a refinery at Lytton in Brisbane.

The Bulwer Island refinery was built in 1965 by Amoco and bought by BP in 1984.

BP also refines crude oil at the Kwinana Refinery in Western Australia.