BP sells its petrochemicals business to rival INEOS for $5 billion — meets its divestments target ahead of schedule
BP India Twitter
- Under the terms of the agreement, INEOS will pay BP a deposit of $400 million and will pay a further $3.6 billion on completion.
- BP staff is expected to transfer to INEOS on completion of the sale.
- In India, BP works in partnership with
Reliance Industries.BP has exploration and production rights in more than 20 offshore oil and gas blocks and operates fuel retail pumps.
The company said this move will further strengthen BP’s balance sheet and will deliver its target for agreed divestments a year earlier than originally scheduled.
“With today’s announcement we have met our $15 billion targets for agreed divestments a full year ahead of schedule, demonstrating the range and quality of options available to us,” said Brian Gilvary, BP’s chief financial officer.
Under the terms of the agreement, INEOS will pay BP a deposit of $400 million and will pay a further $3.6 billion on completion. An additional $1 billion will be deferred and paid in three separate instalments of $100 million in March, April and May 2021 with the remaining $700 million payable by the end of June 2021.
BP currently employs over 1,700 staff worldwide. The staff is expected to transfer to INEOS on completion of the sale, the company said in a statement. In India, BP works in partnership with Reliance Industries. BP has exploration and production rights in more than 20 offshore oil and gas blocks and operates fuel retail pumps.
Early signs of cash crunch
This came after BP earlier this month announced its plans to axe “close to 10,000” jobs, or almost 15% of its workforce globally. The company in an email to employees said that oil prices had plunged “well below the level” the group needed “to turn a profit”.
BP also raised around $11.9 billion in debt through an issue of hybrid bonds in multiple currencies earlier this month.
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