BP is to sell its interests in ethylene and polyethylene production in Malaysia to Petronas for $363m (£236m) in cash.
The agreement covers BP’s 15 per cent interest in Ethylene Malaysia (EMSB) and 60 per cent interest in Polyethylene Malaysia (PEMSB) − both of which are operated by Petronas.
BP’s other businesses in Malaysia are unaffected by the sale.
EMSB’s olefins cracker has production capacity of approximately 440,000 tonnes per annum (tpa) of ethylene, a basic petrochemical feedstock.
PEMSB’s polyethylene plant has a production capacity of 318,000tpa of polyethylene, used primarily for packaging and film manufacture. Ethylene feedstock for the plant is supplied by EMSB.
Sue Rataj, president of BP’s Global Petrochemicals Business, said: ‘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 to extend our world-leading positions in aromatics and acetyls.’
BP and Petronas expect the deal to be complete by the end of the year.