7th Jan 2016 06:39
LONDON (Alliance News) - BP PLC late on Wednesday said it has agreed to sell its petrochemical complex in Decatur, in the US state of Alabama, to Thailand-based petrochemicals group Indorama Ventures PCL, part of a wider move by the FTSE 100-listed oil and gas major to refocus its petrochemicals business.
BP said the sale will allow it to focus on its own technologies within its petrochemicals business, including the production of purified terephthalic acid (PTA), which is used in manufacturing polyester.
"This agreement allows us to focus investment on our world-class PTA production facility in Cooper River, South Carolina, and a key PTA feedstock producer in Texas City, Texas, as well as to maintain a strong position in the important US petrochemicals industry," said Rita Griffin, chief operating officer for BP Global Petrochemicals.
Indorama will buy the complex, including working capital and related infrastructure, and will assume contracts currently in place with suppliers and customers. The deal is due to close later this year. No financial details were disclosed.
BP also is set to spend USD200.0 million upgrading its Cooper River plant and its sister facility in Geel in Belgium, the largest PTA-producing sites in the Americas and Europe, respectively.
The Alabama deal means BP has substantially completed its USD10.0 billion divestment programme for 2014 and 2015. It expects to make another USD3.0 billion to USD5.0 billion in divestments in 2016.
By Sam Unsted; [email protected]; @SamUAtAlliance
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