BP Plc is in talks with India's Reliance Industries and Essar Group to sell its African retail assets, including those in Namibia, that could be worth as much as US$500 million, four sources with direct knowledge of the matter told Reuters yesterday.

It was not immediately known whether BP was showing the African assets to other potential buyers.

BP plans to sell US$30 billion of assets over the next 18 months to cover costs related to the worst oil spill in US history.

Reliance Industries, India's largest listed conglomerate, declined to comment, while a spokesman for steel-to-shipping conglomerate Essar said: "We don't comment on speculations."

BP intends to sell its marketing business in Namibia, Malawi, Tanzania and Botswana and focus on South Africa and Mozambique.

The Times of India yesterday ran a similar story, saying that Mukesh Ambani-run Reliance Industries and Essar Oil are among about half a dozen firms in race to buy the assets.

A South African firm and National Oil Corp of Libya are said to be other serious bidders, according to the paper.

While Essar Oil spokesperson did not offer any comments, a Reliance spokesperson said: "We do not comment on market speculation as per company policy."

Sources said Reliance may be looking at supplying gas oil, gasoline and jet fuel from its twin refineries at Jamnagar in Gujarat to the African nations.

It also exports fuel to Gulf Africa Petroleum Corp, a firm it had acquired in 2007. Gapco owns retail outlets in countries like Tanzania, Uganda and Kenya.

Essar Oil had last year acquired a 50 per cent stake in the four million tonnes a year Kenya Petroleum Refinery in Mombasa.

The acquisition would give a company a ready market for auto and aviation fuel with scope for further expansion into neighbouring high growth countries, sources said.

In Botswana, BP operates 30 retail sites, mostly in the country's main cities of Gaborone and Francistown and supplies fuel to the booming mining industry. Air BP in Botswana sells aviation fuel at Sir Seretse Khama Airport in Gaborone and Maun airport.

Besides selling fuel, lubricants and liquefied petroleum gas (LPG), BP is the largest aviation fuel supplier in Tanzania with about 92 per cent market share.

BP owns half of BP Malawi, which operates 46 service stations. Press Corp has the remaining 50 per cent. It is the sole supplier of aviation fuels and aviation lubricants to the nation's two international airports at Lilongwe and Blantyre. - Nampa-Reuters, The Times of India