500 forecourts for sale as Total reviews UK business

Published on Thursday 9 September 2010 23:12

500 forecourts for sale French oil giant Total put its estate of almost 500 forecourts up for sale yesterday as part of proposals to exit the petrol pump market in the UK.

The world's fourth largest energy group is reviewing its downstream operations here, but said it would keep its UK aviation and lubricants businesses.

The firm, which has been selling products in the UK for 55 years, is also investing 2.5 billion in its North Sea oil and gas exploration arm.

As well as 480 directly-owned forecourts, the proposed sale process covers Total's agreement to supply 300 independent stations that carry its logo.

Russian energy behemoth Gazprom has been reported as a potential buyer of the branded service stations, which currently account for 9 per cent of the UK market, selling more than three billion litres of fuel and lubricants each year.

Total employs about 6,500 people in the UK and indirectly supports 35,000 jobs.

The total number of forecourts in the UK has been steadily declining, with 9,176 stations as of the end of 2009, compared with 10,867 in 2004.

Murco has also announced it is selling its UK retail network of 460 stations.

Oil giants have struggled to make money from forecourt operations, particularly amid the economic downturn and high oil prices.