HERE COME THE INDIANS!

NEWS that Reliance Industries of India has bought a majority stake and management control of East African oil retailer, Gulf Africa Petroleum Corp (GAPCO) should make BP Tanzania consider their options. The good old days of an almost captive market and an overwhelming BP majority of market share have long gone, but, with demand for petroleum products rising quite rapidly in East Africa, the temptation to say, "Stuff it" and get out of Tanzania altogether may not be the no-brainer it once seemed. Even so, Reliance as an alternative refiner to Sapref will offer severe competition. For one thing, the East African markets are within easy reach of India. For another, GAPCO owns and operates large storage terminals and has a retail network in Uganda and Kenya as well as in Tanzania. Reliance is India's largest private company. It operates a 660 000 barrels a day refinery (bpd) and is building another of 500 000 bpd unit. Come to think of it -- and given the hassles of operating in Tanzania -- why not say, " Stuff it" after all, and flog the lot to Reliance (including that old albatross of a refinery in Mombassa)? Are you listening Mr Hayward? This could be your chance to extract BP from that dangerous place called Africa. Less hassles from the Safety Nazis. Less chance of another Texas City or Alaska pipeline spill. Might even be able to dress up a sale as empowerment. Gosh!