BP will acquire, rebrand and operate supermarket retailer Woolworths’ existing 527 fuel and convenience sites, as well as an additional 16 sites currently under construction, across Australia for $1.3 billion.

Tufan Erginbilgic, chief executive, BP Downstream, said: "The development of high-quality, differentiated fuel and convenience offers is a key part of BP’s strategy – allowing us to grow our marketing business in important global markets.

"We are excited to be establishing this strategic partnership with Woolworths, one of Australia’s largest supermarket retailers. Globally we have developed a winning retail formula where we partner with strong local brands, like Marks & Spencer in the UK, to provide our customers with a convenience retail offer that meets the needs of their busy lifestyles. The combination of all aspects of this strategic partnership is expected to create significant value for BP."

Initially, BP and Woolworths will launch a Metro at BP pilot programme across 16 BP fuel and convenience sites, allowing both companies to test the offer and generate customer feedback. A second phase will see a further expansion of the Metro at BP format across more than 200 sites.

Andy Holmes, president BP Australia, added: "Over the past three years BP has significantly invested in its fuel and convenience sites across Australia.