BP To Sell Its Chemicals For $4bn

British oil giant BP is planning to establish a separate company of its underperforming chemical business, which it expects to float worth up to $4bn on the New York stock market.
This idea was attacked by trade unions representing workers at the Grangemouth plant in Scotland, when it was announced yesterday as chief executive Lord Browne revealed record first quarter earnings of $4.7bn, up 17% on last year.
BP is negotiating about the olefins and derivatives (O&D) business with potential buyers, but has received no firm offers. It believes a float in the second half of next year is more likely than a trade sale.
The petrochemical division causes $25m loss on the first-quarter copybook . This was largely attributed to the sale of its specialty intermediates business and the exit from the Baglan Bay site in South Wales.
Lord Browne said future investment would focus on paraxylene, PTA and acetic acid rather than the O&Ds used in plastic goods such as food containers which form the bulk of BP's European petrochemical operations.