Imperial Oil may sell company-owned Esso stations

Imperial Oil Ltd. is thinking about selling off the 500 Esso gas stations it owns to independent partners, though gas would still be sold under the Esso brand.

The Calgary-based company announced today that it is evaluating the potential of moving the stations to a branded wholesaler model. It expects to make a decision in six to eight months.

The company has 12 branded wholesaler partners who operate Esso stations and says it believes those partners would welcome the chance to buy the rest of its gas stations.

There are about 1,700 Esso stations across Canada, but 1,200 of them have been operated by other partners for the past 15 years.

Imperial is also looking for growth opportunities for its On the Run convenience store banner.

"We're looking for partners who really share our vision and are willing to invest in helping us to grow our business, said Brad Merkel, vice-president of fuels and lubricants at Imperial.

Merkel said said it's too soon to say how much money the company could make from the sale or whether it would see all of the stations to one owner. "I would say we're not ruling anything out at this point in time," said Merkel.

Imperial Oil would continue to supply its Esso branded fuel and lubricants to all stations.