BP, which has sold a 49 per cent stake in BP Oman to state-owned Oman Oil Co, has signed a management contract to run the company for a year.

Sources close to BP said the decision to sell the stake in BP Oman was part of its plan to withdraw from the retail sector in the region and focus more on the core business.

According to sources in Oman, the contract signed with the present management can be cancelled only after the expiry of a six-month notice.

It is also learnt that the name of 74 filling stations under BP Oman, will remain the same until a decision to the contrary is taken.

Though Trowers & Hamlins, to BP Oman's advisers on the deal, refused to divulge any financial details of the deal, indications are that Oman Oil Co might have paid around Dh85 million (9 million riyals) to acquire stake in the company.

Oman Oil Co will command 51.4 per cent voting rights in the company because of the multiple rights enjoyed by five per cent of the total shares in the company.

It was in late 1990s that BP divested 51 per cent stake in the company to be subscribed by the public.

BP Oman, which is listed on Muscat Securities Market, has a market capitalisation of around Dh175 million (18.383 million riyals).

BP's direct involvement in Oman started in 1957 when it was granted a licence to refuel aircraft operating from a base in Azaiba. This was followed, a year later, by the granting of a licence to store and distribute petroleum products throughout Oman.

Since then, BP has expanded its operations in Oman and now undertakes marketing and distribution of fuel and lubricants to retail, bulk and government markets in the country.

Today, BP has representative offices across the region. It has a strong aviation business in Dubai and Sharjah, and has a presence in Bahrain, Aden and Beirut. BP also markets lubricants throughout the Middle East.