BP exit Sinopec petrochemicals JV in China

BP to exit Sinopec petrochemicals JV in China

11:51 AM, 9th August 2016
BP to exit Sinopec petrochemicals JV in China

FRANKFURT, GERMANY/HONG KONG, CHINA: BP Plc is seeking buyers to sell its 50 percent stake in SECCO, a 50:50 petrochemicals joint venture (JV) between Sinopec Group and BP, in a deal that would fetch $2-$3 billion, people familiar with the matter told Reuters.

BP has hired an investment bank to sell its shareholding in SECCO as part of a drive to cash out of businesses where it lacks control, the people added. A successful deal would mark BP's first significant exit from a business in China.

Situated in Caojing near Shanghai, (China) SECCO is China's largest petrochemicals refinery and was built at a cost of $2.7 billion, according to BP's website.

SECCO, a venture formed in 2001, produces ethylene and propylene, which are used to make resins, plastics and synthetic rubbers.

BP's stake has been marketed to existing refinery operators in China, including companies from Japan, South Korea, Taiwan and Europe, the people added.

BP, like other global oil and gas companies, has been sharpening its focus on costs and core businesses as it reels from lower oil prices.

It has sold more than $50 billion of assets since the deadly 2010 Gulf of Mexico oil spill in order to pay for clean-up costs and legal bills. This year, it plans to offload between $3 billion and $5 billion worth of assets, of which $1.9 billion has been agreed, it said when releasing second-quarter earnings last month.

© Reuters News

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