BP to sell Malaysian petrochemical interests

BP has agreed to sell its interests in ethylene and polyethylene production in Malaysia to Petronas. The agreement concerns BP’s 15% interest in Ethylene Malaysia Sdn Bhd (EMSB) and 60% interest in Polyethylene Malaysia Sdn Bhd (PEMSB), both of which are operated by Petronas, and are located at Kertih, on the east coast of Malaysia. Under the terms of the agreement, Petronas will pay US$363 million in cash to BP, inclusive of a balance sheet adjustment of US$13 million and the repayment of a shareholder loan of US$53 million. Both parties anticipate completing the transaction by the end of 2010. (September 1, 2010)