As per the agreement, the oil company will dispose its 15% interest in Ethylene Malaysia (EMSB) and 60% interest in Polyethylene Malaysia (PEMSB), both of which are operated by Petronas, and are located at Kertih, on the east coast of Malaysia.
Subject to certain conditions, both parties expect to complete the transaction by the end of 2010.
Additionally, BP will also receive an EMSB pre-closing dividend payment amounting to $48m, subject to EMSB Board approval.
BP president for global petrochemicals business Sue Rataj said that the company will continue to focus on the development and expansion of its olefins and derivatives business in China, and other rapidly growing markets, and pursue opportunities in China and India.
EMSB’s olefins cracker has production capacity of approximately 440,000 tonnes per annum (tpa) of ethylene, a basic petrochemical feedstock.
The company is owned by Petronas (72.5%), BP (15%) and Idemitsu (12.5%).
PEMSB has a production capacity of some 318,000tpa of polyethylene, used primarily for packaging and film manufacture.
Ethylene feedstock for the plant is supplied by EMSB.
