Company News

BP to sell Malaysian assets to Petronas
To focus its attention on more lucrative countries like China and India and to pay off some of its debts incurred from its worst oil spill in the US, British petrochemical giant BP is selling its 75% stake in its Malaysian ethylene and PE assets to its Malaysian partner Petronas.

It will sell its 15% stake in Ethylene Malaysia and 60% interest in Polyethylene Malaysia, both of which are located in Kertih, Terengganu, for US$363 million. "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," said Sue Rataj, President of BP's Global Petrochemicals Business. BP also said that while both the joint ventures are attractive businesses with strong domestic and regional markets, the company recognises that Petronas is their natural owner and has various integration opportunities uniquely available to it at the Kertih site.

Ethylene Malaysia, of which Idemitsu Kosan also owns 12.5%, has a capacity for 440,000 tonnes of ethylene/year while Polyethylene Malaysia has a capacity for 318,000 tonnes of PE/year.

Not affected are BP's other businesses in Malaysia including a 600,000 tonne purified terephthalic acid plant, a lubricants plant and its 70% ownership of a 560,000 tonne acetic acid plant.