Saturday 21 October 2017

BP sells off Malaysian assets for $363m

BP, seeking cash to help pay for the worst US oil spill, agreed to sell its Malaysian chemical assets to Petronas to focus on projects in China and India.

BP will sell its 15pc stake in Ethylene Malaysia Sdn and 60pc interest in Polyethylene Malaysia Sdn for $363m, the company said today in a statement. It will also be eligible for a possible $48m dividend from the ethylene unit.

“BP will continue to focus on the development and expansion of our olefins and derivatives business in China, and other large rapidly growing markets, and pursue opportunities in China and India,” Sue Rataj, President of BP’s Global Petrochemicals Business, said in the statement.

BP, Europe’s largest oil producer by volume, in July pledged to sell as much as $30bn of assets over 18 months to raise cash to meet the costs of the Gulf of Mexico oil spill.

It has already agreed to sell oil and gas fields in the US, Canada and Egypt to Houston-based Apache Corp for $7bn and assets in Colombia to Ecopetrol SA and Talisman Energy Inc for $1.9bn in cash.

In July, the UK company informed the governments of Vietnam and Pakistan that it put its production assets in the countries up for sale.

BP is considering divesting stakes in Alaska’s Prudhoe Bay, according to people with knowledge of the matter.

Bloomberg

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