UPDATE 1-Woolworths Group enters 15-year supply oil supply with Caltex Australia | Energy & Oil

(Adds background, details on the CEO of the oil company, Group CEO's quote)

July 5 (Reuters) – Woolworths Group Ltd., Australia's largest supermarket operator, said on Thursday it has entered a 15-year fuel supply deal with Caltex Australia Ltd, even as it continues to pursue an IPO or sale of its petrol business.

The firm will also start up a wholesale food supply over 700 existing Caltex convenience sites as part of the deal.

Thursday's deal comes two weeks after Woolworths canceled a $ 1.8 trillion ($ 1.33 billion) sale of its petrol stations to BP Plc, after it was blocked by Australia's antitrust regulator.

The grocer wants to exit the business to focus on the conditions of the future, and it would pursue alternative options for 527 petrol stations and 16 development sites, without giving details.

Woolworths on Thursday said James Goth, its director, corporate development, as the petrol business's chief executive.

Woolworths Group CEO Brad Banducci said in a statement that he was disappointed with the BP deal's termination he felt the customer benefits of the caltex alliance and the new fuel supply deal would help deliver a "compelling outcome" for customers and shareholders.

The regulator's refusal in December to greenlight the proposed deal boosted rival BP Caltex, which stood to lose a major fuel supply contract with Woolworths.