BP buys a stake in China Aviation Oil
BP has reported that they are buying a stake in China’s main jet fuel importer China Aviation Oil (CAO). They have however not revealed on how much this deal is going to cost them. China Aviation Oil also refused to comment on this news. The company is working hard on recovering from a stage of near collapse.
Market reports claim that BP is buying around 23% of CAO, which is based in Singapore but majority owned by Chinese state firm China Aviation Oil Holding Company. CAO suffered huge losses last year. This deal is however expected to help BP increase their standing in the ever-growing Chinese market where they have a pretty minimal presence.
BP currently owns a 24% stake in another Chinese jet oil company, South China Bluesky Aviation Oil. This company supplies fuel to around 15 civilian airports. European oil trader Vitol had also shown interesting in buying a stake in the company in addition to another Singapore based firm Temasek Holdings which was seeking a stake of less than 10 percent for about $10 million.