Brisbane job losses as BP refinery is closed
Date
April 2, 2014
Oil giant BP has announced it will close its Brisbane refinery resulting in the loss of more than 350 jobs.
The number of jobs at the Bulwer Island refinery at Pinkenba will be reduced from 380 to 25 by 2015.
BP Australia president Andy Holmes announced the closure at a press conference in Melbourne on Wednesday morning.
"This is a difficult day for the people of Bulwer and were are doing everything we can to support them," he said.
The 380 staff at the plant site were called to a town hall-style meeting on Wednesday morning.
"They were the first to know ... as I walked in here the announcement was being made at Bulwer," Mr Holmes told reporters in Melbourne.
The Bulwer refinery has the capacity to produce 102,000 barrels of oil a day, including petrol, diesel, kerosene, jet fuel, heating oil and LPG.
But Mr Holmes said the rapid growth of major refineries in the Asia-Pacific region was affecting the fuels supply chain in Australia and putting huge commercial pressure on smaller scale plants.
Tim Wall, managing director of Bulwer Island refinery, said the plant would provide employees with transitional support and job placement assistance.
"This is a sad day for all of us at Bulwer and I know that these changes will be difficult for our employees," Mr Wall said.
"Given the quality of our people, I’m confident that those who choose to look for alternative employment will be highly regarded by employers in this area."
The announcement comes amid cutbacks and closures throughout Australia's refining sector, as local plants struggle with oversupply in refining in Asia, a strong dollar and high costs.
Earlier this year, rival Royal Dutch Shell announced its exit from refining and marketing in Australia, with the agreed $2.9 billion sale of its Geelong refinery and most of its retail business to international trader Vitol.
Shell has already closed its Sydney refinery, while Caltex Australia is set to convert its Sydney refinery to an import terminal by the end of this year.
Shadow treasurer Chris Bowen said the news would be distressing for the BP workers.
‘‘I understand that BP is making steps to retain some workers but obviously not all,’’ he told reporters in Sydney.
‘‘We would encourage BP and the federal and state governments to work cooperatively to ensure every assistance possible is given to the workers.’’
The Bulwer Island refinery was constructed by Amoco Australia in the mid 1960’s at a cost of about $25 million. BP bought the plant in July 1984.
The area on which refinery stands was originally a tidal mangrove swamp that was built up using sand dredged from Boggy Creek and the Brisbane River.
Read more: http://www.brisbanetimes.com.au/queensland/brisbane-job-losses-as-bp-refinery-is-closed-20140402-35xld.html#ixzz2xgdplYhj
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