27 Apr BP sells Chinese petrochem asset to Sinopec for $1.6 billion
BP revealed a US$1.68 billion deal to sell its 50% stake in the Shanghai SECCO Petrochemical Company (SECCO) to Gaoqiao Petrochemical, a 100%-owned subsidiary of Sinopec.
The announcement gives Sinopec a controlling stake in SECCO which is currently owned by BP (50%), Sinopec (30%) and Sinopec Shanghai Petrochemical Company (20%) in which Sinopec holds a majority interest.
Based in Shanghai, SECCO is a major producer of olefins – ethylene and propylene – together with polymers, other derivatives 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.
BP has been operating in petrochemicals in China since the 1970s and maintains three additional petrochemical manufacturing joint ventures in China.
“China is a country of great significance to BP given its market potential,” said Dr. Xiaoping Yang, BP China president. “BP has been committed to doing business in China for more than four decades. Looking into the future we plan continue to invest in China in areas that provide the best growth opportunities for BP, our Chinese partners and the country.”