News Post
BP exits the petrochemical business with a $5 billion sale to INEOS as a cost cutting measure (4)
BP recently announced that it has agreed to sell its global petrochemical business to British chemical company INEOS for $5 billion to meet expected divestment targets. This sale is expected to be completed by the end of 2020, with INEOS paying a deposit of $400 million and $3.6 billion by the end of the year. The remaining portion of $1 billion will be done over 2021.
This sale allows BP to meet its previously established goal of $15 billion in asset sales ahead of the anticipated 2021 expectation. BP CEO Bernard Looney stated that “Today’s agreement is another deliberate step in building a BP that can compete and succeed through the energy transition.”
INEOS will receive BP’s aromatics business such as purified terephthalic acid (PTA), which is a key feedstock for polyester used in everyday products such as clothing and packaging, and the company’s acetyls business used in glues, paints, etc. This selloff of petrochemical activity by BP also appears to contribute towards the company’s previously announced plans to reduce its carbon emissions by 2050.
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