BP has agreed to sell its 50 per cent stake in the Shanghai SECCO Petrochemical Company Limited (SECCO) to Gaoqiao Petrochemical Co, a subsidiary of China Petroleum & Chemical Corporation (Sinopec), for US$1.68 billion.
Based in Shanghai, SECCO is a major producer of olefins - ethylene and propylene - together with 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. 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,” said Rita Griffin, chief operating officer, BP Global Petrochemicals.
The dealis subject to a number of regulatory approvals and it is currently slated to be complete before the end of the year.
SECCO is currently owned by BP (50 per cent), Sinopec (30 per cent) and Sinopec Shanghai Petrochemical Company Limited (20 per cent), in which Sinopec holds a majority interest.