BP may sell its refineries and petrol stations

THE board of BP is believed to be examining options for the oil giant including offloading its refining and petrol stations businesses.

The company declined to comment on "market rumours" yesterday though it has been suggested that the board has drawn up a report entitled Future BP, which will be discussed at the board meeting a week tomorrow when the company is due to unveil second-quarter figures.

One industry source, who was unaware of the report, said that rumours about the company splitting itself up were something that came up regularly. However, there were strong indications that disposing of assets may be a response to political pressure for change following the oil spill in the Gulf of Mexico.

Its plans are said to include selling its American operations - with Exxon Mobil considered a potential buyer - and ending its practice of outsourcing large projects, a move that appears to deal with the problems associated with the Deepwater Horizon crisis. The directors expect to face the Senate committee investigating possible links with the release of the Lockerbie bomber. BP could also face a ban on offshore drilling in the US.

Selling the downstream business would affect 50,000 employees, more than half its workforce.

The EU energy commissioner was criticised yesterday for calling for a temporary ban on drilling in the North Sea.

Trade body UK Oil & Gas told Scotland on Sunday it risked 6 billion of investment.