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Australia: BP, Shell to reorganize oil industry

 |  January 7, 2014

The giants of the oil world are reportedly considering a major shakeup of the industry in Australia, where Royal Dutch Shell and BP may divest gas stations and refineries to raise cash for energy production.

Local reports say Shell is already in talks with two parties about a possible $3 billion sale of assets, though sources said the discussions are “preliminary.” The plans would parallel Shell head Peter Voster’s recent announcement that the company is in a “divestment phase” as reports say the companies are look to focus more on energy production and exploration operations.

Sources say BP is similarly in talks for a $3 billion sale of gas stations and refineries, reports say.

According to reports, Australia’s petrol industry has seen dramatic changes in recent decades with fewer gas stations and older refineries.

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