LONDON (ICIS)--British Petroleum (BP) has agreed to sell its 50% stake in the Shanghai SECCO Petrochemical Company (SECCO) to Gaoqiao Petrochemical, a subsidiary of China’s energy major Sinopec for $1.68bn, the UK oil, gas and chemical major said on Thursday.
SECCO was so far owned by BP (50%), Sinopec (30%) and Sinopec Shanghai Petrochemical Company (20%).
SECCO is a Shanghai-based producer of olefins – ethylene and propylene – as well as polymers and other derivatives including polyethylene, polypropylene, acrylonitrile styrene, polystyrene, butadiene and other products.
“This decision aligns our petrochemicals business in China with our global focus on areas where BP has leading proprietary technologies and competitive advantage,” said BP global petrochemicals CEO Rita Griffin.
“China is a key region for our chemicals business and BP will continue to look for opportunities to build on our position in the country.”
The transaction, which will be paid for in instalments, is expected to be completed by the end of 2017, once regulatory approvals have been received.