News Coverage nwitimes.com –Published: June 22, 2006
BP GAS STATIONS FOR SALE
ENERGY GIANT WANTS OTHERS TO RUN, OWN FACILITIES
By Keith Benman
International energy giant BP is selling 16 of its flagship BP Connect gasoline stations and convenience stores
in the greater Chicago area, including four in Northwest Indiana.
The company is also selling off 41 other BP branded gas stations in Illinois, Indiana, Pennsylvania and Ohio, according to
NRC Realty Advisors, of Chicago. In addition, it has put dozens of other gasoline stations and vacant sites up for sale for
commercial development, including four in Northwest Indiana.
The gas stations and commercial sites are being sold in a "buy one, some or all" format with bids due July 7.
The sale is being conducted by NRC Realty Advisors, of Chicago. More information is available online at www.nrc.com.
The BP Connect gas stations in the Chicago area are offered for sale with new 20-year BP franchise and fuel supply agreements.
At least 28 of those in other areas will be BP-branded dealer-owned businesses.
BP has 15,900 gasoline stations in the United States. A company spokesperson did not return a call seeking comment.
BP did a periodic review of its gas station network and decided it could better serve customer
needs by selling some of its company-owned stations, according to Amanda Gant, of NRC Realty Advisors.
Integrated petroleum companies have been selling off their stations in the United States for several years while giving
new owners franchise or branding rights, according to Dave Ware, member relations director for the Illinois Petroleum Marketers Association.
"This is not just a BP thing," Ware said.
ConocoPhillips made a similar move several years ago, selling off many company-owned stations in the United States.
Those stations operate under the Phillips 66 and Conoco brand names.
BP is a global energy company that is involved in every facet of petroleum production — from the oil well to the gas station pump.
It had $262 billion in sales in 2005 and employs 96,200 people worldwide.
BP Connect gas stations include the Wild Bean Cafe. The stations and cafes are open 24 hours a day. The menu at
the cafe includes soup, sandwiches, salads and gourmet coffee.
NRC Realty Advisors is not giving out information on what price they expect the stations to fetch.
But being a BP Connect franchisee is not cheap. A franchisee makes a total investment of between $2.3 million to $6.6 million,
according to information on franchising posted at the BP Web site. They need up to $1 million in cash up-front.
Northwest Indiana is also home to the BP's Whiting Refinery, which employs 1,200 people and is one of 15 BP refineries worldwide.
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