BP unveils first retail fuels site in Mexico

Opening marks start of five-year plan aimed at opening around 1,500 retail sites for growing Mexican consumer market

MEXICO CITY - BP today officially opened its first retail fuels site in Mexico as part of its plan to invest in the growing Mexican retail fuel and convenience market over the next five years.

Opened in the Satélite area of Mexico City, the new BP retail site is the first global oil company branded site operating in Mexico, since the country approved deregulation of the fuel retailing market in 2013. BP has plans that could see it open around 1,500 retail sites in Mexico over the next five years, part of its strategic intention to grow its retail business globally.

BP Downstream chief executive officer Tufan Erginbilgic commented: “BP’s retail strategy is focused on delivering a strong, differentiated offer built around top-quality fuels, lubricants and convenience for consumers in growing markets worldwide. We are delighted to be the first international oil company serving Mexican consumers in what is the sixth-largest consumer gasoline and diesel market globally.”

The new BP sites in Mexico will feature inviting retail stores and full-service refueling islands offering BP fuels with ACTIVE technology, that help to protect consumers’ engines. Developed and tested by BP engineers and chemists in their world-class laboratories, this technology is unique to BP and new in the Mexican market.

"BP’s retail offer is already well-known in the US and Europe for high-quality fuels, Castrol lubricants and a great convenience offer,” said Álvaro Granada, general manager of BP’s retail business in Mexico. “We are delighted to bring our BP-branded fuel and convenience offer to consumers for the first time here in Mexico and look forward to opening more BP stations throughout the country and creating thousands of new retail jobs in the process."

BP plans to open around 200 BP-branded retail sites in Mexico this year including both dealer and company owned-and-operated sites.

BP has more than 18,000 service stations in 19 countries around the world. In December 2016, BP and Woolworths Group agreed to enter a strategic partnership where BP will acquire and operate 527 retail sites in Australia, subject to regulatory.

Further information:

Contacts

BP press office, London: +44 (0)20 7496 4076, bppress@bp.com

Guerra Castellanos & Asociados (PR Agency), prensabp@gcya.net

Notes to editors

• Present at the launch event in Mexico City were: Pedro Joaquin Coldwell, Secretary of Energy and Olivier Evans, UK Embassy Deputy Chief of Mission; and from BP were Richard Harding, commercial development and new markets vice-president, BP Downstream; Álvaro Granada, general manager retail Mexico, BP Downstream; Paul Auge, LATAM business development vice-president, BP Downstream; and Olaf Carrera, BP Mexico government & public affairs vice-president
• BP has more than 100 years of experience in the exploration, production, transformation and distribution of oil and its derivatives, with operations in more than 80 countries.
• BP also supplies and commercializes natural gas, petroleum liquefied gas, liquefied natural gas, crude oil and other products derived from oil and gas refining, including gasoline and petrochemicals.
• Castrol, one of BP’s international brands, is one of the world's top motor oil and specialist lubricants brands.
• BP has been present in Mexico for around 50 years, starting with lubricant commercialization and distribution.
• In the Mexican Energy Reform framework, BP participated in the first tender for deepwater projects (Ronda 1.4), and won interests in consortium in two exploration blocks in the Cuenca Salina in the Southeast Basins.
• BP is also pursuing a number of opportunities in wholesale marketing for natural gas, natural gas liquids and power.

Cautionary statement

In order to utilize the ‘safe harbor’ provisions of the United States Private Securities Litigation Reform Act of 1995 (the ‘PSLRA’), BP is providing the following cautionary statement. This press release contains certain forward-looking statements concerning BP’s plans to invest in the Mexican retail fuel and convenience market, including plans to open 10 BP-branded retail sites in Mexico City in March, 2017, 200 retail sites in Mexico in 2017 and up to 1,500 retail sites in Mexico over the next five years; plans and expectations related to the creation of retail jobs in Mexico; and plans to acquire and operate 527 retail sites in Australia. Actual results may differ from those expressed in such statements, depending on a variety of factors including changes in public expectations and other changes to business conditions; the timing, quantum and nature of divestments; the receipt of relevant third-party and/or regulatory approvals; future levels of industry product supply; demand and pricing; OPEC quota restrictions; PSA effects; operational problems; regulatory or legal actions; economic and financial conditions generally or in various countries and regions; political stability and economic growth in relevant areas of the world; changes in laws and governmental regulations; exchange rate fluctuations; development and use of new technology; the success or otherwise of partnering; the actions of competitors, trading partners and others; natural disasters and adverse weather conditions; wars and acts of terrorism, cyber-attacks or sabotage; and other factors discussed under “Principal risks and uncertainties” in our Stock Exchange Announcement for the period ended 30 June 2016 and under "Risk factors" in our Annual Report and Form 20-F 2015.