BP sells global petrochemical business in $ 5 billion contract

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As part of its plan to reinvent itself through the energy transition, BP has agreed to sell its global petrochemical business to UK Ineos for US $ 5 billion, the super-major said on Monday.

The US $ 5 billion deal with Ineos includes the sale of BP’s aromatics, acetyls and related activities and is expected to be completed by the end of this year, pending regulatory and other approvals.

The manufacturing plants and their main products that are sold include those of Cooper River, South Carolina, Texas City, Texas, and the production agreement for Eastman bp Texas City. Outside of America, the activities included in the sale are manufacturing plants in Hull, in the United Kingdom and Geel in Belgium, as well as stakes in factories in China, Malaysia, South Korea and Taiwan.

The agreed sale is the next strategic step in BP’s reinvention of an oil and gas company into an energy company that could be competitive in the energy transition, said BP.

The transaction also helps the super-major meet its target of $ 15 billion in asset divestments a year ahead of schedule.

‚ÄúStrategically, the overlap with the rest of bp is limited and we would need considerable capital to develop these activities. As we strive to build a more focused and integrated pb, we have other opportunities that better fit our future direction, “said general manager Bernard Looney in a statement.

“Today’s agreement is another deliberate step in building a bp that can be competitive and succeed during the energy transition,” added the executive.

Earlier this month, BP announced the loss of 10,000 jobs, or about 15% of its workforce. As BP aims to reinvent itself as an energy company and a zero-net company by 2050 and sooner, the UK-based super-major is resorting to job cuts – most of which are in office positions, to cut costs due to the recession. seriously affected his finances.

By Tsvetana Paraskova for Oilprice.com

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