In the wake of coronavirus and subsequently lowering oil demand is forcing BP plc to stop its refineries in Australia. After curbing the oil production, it will turn Kwinana oil refinery, which is making heavy losses and one of the biggest among all refineries into a terminal of fuel import.
Notably, the Asian market is giving the oil major a stiff fight, and due to the pandemic, the business has narrowed down, and margins are gone.
It will be the first company out of many to pull the plugs from Australian markets in the category. Besides, some more competitors are thinking of taking a call on their refineries.
According to BP, it would corrugate its business steadily within a span of six months from the country. The current production at the plant is 146,000 barrels a day. It is situated in Western Australia. The step will curb jobs of 650 employees working in the refinery.
The move will give a jolt to the expectations of the Australian government, which was thinking of building national fuel security for creating new jobs.