SOL Petroleum To Shutter Businesses In Jamaica

(Jamaica Observer, Karena Bennett, 8.May.2019) — SOL Petroleum Jamaica Limited will shutter its lubricant and bunkering business across the island, effective June 30.

The announcement comes six years after Simpson Oil Limited (SOL) launched its business in Jamaica following the acquisition of Shell’s marketing and service station operations by French marketing company, Rubis in 2012.

It also follows the acquisition of 75 per cent shareholding SOL Investments Ltd, and its subsidiaries, by Canadian company Parkland Fuel Corporation for a total consideration of C$1.57 billion last October. The deal also saw the Simpson Group acquiring 9.9 per cent of Parkland’s issued and outstanding shares.

In October 2020, Parkland will have the right to purchase the remaining 25 per cent of shares in the Simpson Group.

“Sol wishes to thank and recognise the team for their demonstrated professionalism throughout the years. Sol also wishes to take the opportunity to extend its appreciation to the social and government partners, our valued customers and suppliers, and the Jamaican community at large,” a statement obtained by the Jamaica Observer said.

The company, however, declined to state its reason for leaving the island and how many employees will be affected by its decision. It’s also unclear if the company is looking to pull operations from any other market in the Caribbean.

Known as the largest petroleum marketing company in the region, Sol Petroleum’s operation spans 23 territories. The company supplies lubricants for automotive and industrial applications including shipping, luxury boating, aviation, mining, trucking and fleet operations, as well as for individuals.

It has retail presence of 526 stations, selling 2 billion litres of fuel annually under the brands SOL, Shell and Esso. The lubricant supplier also has a robust portfolio of commercial and industrial customers across a set of diverse industries, generating a sales volume of 2.5 billion litres.

In Jamaica, SOL acts as macro-distributor for Shell lubricants, provides associated technical support services, and is also involved in a joint venture that provides bunkering services from the Kingston Harbour.

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