BP To Sell 50% Stake In Chinese JV SECCO To Sinopec For $1.68 Bln - Quick Facts

(RTTNews) - BP plc. (BP.L, BP_UN.TO, BP) on Thursday announced that it has agreed to sell its 50% stake in the Shanghai SECCO Petrochemical Company Limited or SECCO to a unit of China Petroleum & Chemical Corp. (SNP) or Sinopec for a total consideration of $1.68 billion.

BP will sell the stake to Gaoqiao Petrochemical Co Ltd, a unit of Sinopec, BP's joint venture partner.

The sale is subject to a number of regulatory approvals and other conditions, subject to which, it is currently anticipated to complete before the end of the year with the consideration payable in instalments.

SECCO is currently owned by BP with 50% stake, Sinopec with 30% stake and Sinopec Shanghai Petrochemical Company Limited with 20%. Sinopec holds a majority interest in Sinopec Shanghai.

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.

Rita Griffin, Chief Operating Officer, BP Global Petrochemicals, said, "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."

BP said it intends to use the proceeds from the disposal, most if not all of which are anticipated to be received in 2017, for general corporate purposes.

In London, BP shares were trading at 447.50 pence, down 1.36 percent.