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bp to Sell Petrochemicals Business to INEOS

Gasoil News - Published on Wed, 01 Jul 2020

Image Source: bp Petrochemicals Business
bp announced that it has agreed to sell its global petrochemicals business to INEOS for a total consideration of $5 billion, subject to customary adjustments. The agreed sale, the next strategic step in reinventing bp, will further strengthen bp’s balance sheet and delivers its target for agreed divestments a year earlier than originally scheduled. Under the terms of the agreement, INEOS will pay bp a deposit of $400 million and will pay a further $3.6 billion on completion. An additional $1 billion will be deferred and paid in three separate instalments of $100 million in March, April and May 2021 with the remaining $700 million payable by the end of June 2021. Subject to regulatory and other approvals, the transaction is expected to complete by the end of 2020.

bp’s petrochemicals business is focused on two main businesses aromatics and acetyls each of which has leading technology and advantaged manufacturing plants, including a strong presence in growth markets in Asia. In total, the businesses have interests in 14 manufacturing plants in Asia, Europe and the US and in 2019 produced 9.7 million tonnes of petrochemicals.

The sale agreement includes the whole of bp’s aromatic and acetyls businesses, including assets, technology and licences, as well as related assets. Manufacturing plants, and their primary products, included in the sale:

Americas: Cooper River, South Carolina (PTA - bp 100%); Texas City, Texas (PX and metaxylene - bp 100%); Eastman bp Texas City Production Agreement (acetic acid); Atlas Methanol, Point Lisas, Trinidad & Tobago (methanol – bp 36.9%).

Europe: Hull, UK (acetic acid, acetic anhydride - bp 100%); Geel, Belgium (PTA, PX - bp 100%).

Asia: Zhuhai, China (PTA – bp 91.9%), Chongqing, China (acetic acid, acetate esters – bp 51%); Nanjing, China (acetic acid – bp 50%); Merak, Indonesia, (PTA – bp 100%); Kertih, Malaysia (acetic acid – bp 70%); Ulsan, South Korea (acetic acid and vinyl acetate monomer – bp ~50.9%); Taichung, Taiwan (PTA – bp 61.4%); Mai Liao, Taiwan (acetic acid – bp 50%).

bp’s petrochemicals assets at Gelsenkirchen and Mulheim in Germany are highly integrated with bp’s Gelsenkirchen refinery and are not included in the sale.

Source :

Posted By : Yogender Pancholi on Wed, 01 Jul 2020
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