British energy giant BP announced yesterday that it has agreed to buy a network of Australian petrol stations from supermarket chain Woolworths for US$1.3 billion (1.2 billion euros).

BP said in a statement that it will establish a strategic partnership with Woolworths in a deal for the purchase, rebranding and operation of Woolworths's existing 527 fuel and convenience stores, plus 16 sites under construction, for the equivalent of AU$1.8 billion.

"The development of high-quality, differentiated fuel and convenience offers is a key part of BP's strategy," said Tufan Erginbilgiç, boss of its downstream business - which includes refining, marketing and distribution.

"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 U.K., to provide our customers with a convenience retail offer that meets the needs of their busy lifestyles."

BP already owns 350 retail locations across Australia and supplies fuel to an additional 1,000 outlets owned by independent business partners.