BP to sell 50% stake in SECCO to Sinopec

Oil giant BP has agreed the sale of its 50% stake in the Shanghai SECCO Petrochemical Company to Gaoqiao Petrochemical, a subsidiary of Sinopec and BP's joint venture partner, for a $1.68bn.

The deal is expected to complete before the end of the year and the consideration is payable in instalments.

BP said the decision aligns its petrochemicals business in China with its global focus on areas where it 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 of BP Global Petrochemicals.

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.

At 1328 BST, the shares were down 1.4% to 447.50p.