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Tahitian-based oil outfit Pacific Petroleum Company has established a wider footprint and stronger presence in the Pacific region following its purchase of global giant BP Oil’s Pacific business.
PPC, which recently signed with BP a Sale and Purchase Agreement for the sale of the shares in BP South West Pacific Ltd, has issued a statement announcing the appointment of former Fiji Electricity boss Rokoseru Nabalarua to head its proposed Fiji subsidiary.
CEO and chairman, Albert Moux said PPC expects the synergies between its new and existing business to go a long way in easing the cost burden associated with oil supply in the region, often a subject of much debate in small and scattered Pacific island countries.
“In today’s markets, the critical size of a business and its capacity to reduce its costs through a wider operation base is a must to remain competitive in an area characterized by heavy capital base (high investment, high turnover and working capital) and low unit margins,” Moux said.
“BPSWP volumes of 300 million litres will complement the current 500 million litres of PPC to form a combined business of 800 million litres. PPC and BPSWP will have a common supply of products shipped jointly from the regional refineries to ensure an optimized supply chain where the additional of both volumes will help secure FOB and freight at competitive rates,” he added.
Moux said both PPC and BP SWP will offer the same services to a large portfolio of local, regional and global customers through their B2B and B2C channels.
“The Retail, Aviation, Marine and Commercial activities will be reinforced through the combined operations of PPC and BP SWP. The customers will be able to obtain products and services seamlessly in a much wider area. Obvious synergies around supply, storage capacities, technical services and expertise, and systems will be consolidated to help deliver an even better value proposition to the customers in all areas of the business,” Moux said.
He believes that Fiji, alongside island countries that surround it, offer PPC huge growth potentials.
“PPC’s shareholders are born and based in the Pacific Islands where they have successfully developed their network and activities. They believe in the future of a regional economy where important decisions can be taken locally and where the fruit of such ventures can directly benefit the local communities,” said Albert Moux, PPC CEO and chairman.
“They see Fiji and the countries around as a major regional market where size, infrastructures, skills and diversity are present and offer strong potential for growth in the future. PPC is pioneering a new level of bilateral relationships between Pacific islands and expects this trend to develop in the near future and that cooperation in other areas will benefit the economies and the welfare of people in all countries,” Moux said.
PPC’s presence in New Caledonia, French Polynesia and Vanuatu will now be complemented by the BP WSP’s businesses in Fiji, American Samoa, Tonga, Vanuatu, Tuvalu and Cook Islands.
