As economic growth increased demand
for oil and oil products, BP found that
its small refinery could not effectively
compete, particularly with cheaper imports
from Middle East. Expansion would only
have been possible with additional land,
which was not easy to procure. Indeed,
the only significant expenditure was on
improvements to the jetty for the loading
of cargo. More successful for BP were its
marine bunkering and aviation fuels
businesses.
By 1969, Marine BP was
trading 40,000 tons per annum, and
providing aviation fuel at Singapore airport,
a combined market share of 40%.
Air BP refuelling at Paya Lebar Airport.
However, in 1979, BP expanded its refining capacity when it took a 30% share in the Singapore Refining
Company at Pulau Merlimau. The main shareholder was the Singapore Petroleum Company (40%) with
CalTex owning the other 30% share. In addition to its refining capacity, BP anticipated the commercial
opportunity offered by the regional lubricants market and opened a lubricants blending plant at Jurong in
1978.
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