Apr 27, 2017
BP sells Chinese stake to Sinopec arm for $1.68bn
BP has agreed to sell one of its biggest investments in China to Sinopec for $1.68bn, as it seeks to raise up to $5.5bn from disposals this year to help pay for the 2010 Deepwater Horizon disaster in the US. The UK oil major is to sell its 50 per cent stake in the Shanghai Secco Petrochemical company to China Petroleum & Chemical Corporation, a wholly-owned subsidiary of Hong Kong-listed Sinopec and BP's partner in the joint venture. The Secco plant started operations in 2005 after investment by BP and Sinopec, and makes products including ethylene, which is a building block for plastics. BP sold the core of its olefins and derivatives unit to Ineos, the UK petrochemicals company controlled by British billionaire Jim Ratcliffe, in 2005. "Looking into the future, we plan to continue to invest in China in areas that provide the best growth opportunities for BP, our Chinese partners and the country." The proceeds from the Secco stake sale, which is expected to complete before the end of the year, would be used for "General corporate purposes", said BP, which is aiming to raise $4.5bn to $5.5bn from assets sales this year.
Make a complaint about BP by viewing their customer service contacts.