BP sells SECCO stake to Sinopec

BP plans to sell its stake of 50% in the Shanghai SECCO Petrochemical Company (SECCO) to Sinopec’s subsidiary Gaoqiao Petrochemical Corporation for USD 1.68 billion, the British company announced on Thursday.

Sinopec already holds a 30% stake in SECCO as well as a controlling share in the Sinopec Shanghai Petrochemical Company, which holds the remaining 20%.

The deal, expected to close later this year, is part of a BP plan to sell about USD 5 billion worth of global assets in 2017, though the company said it would continue to invest in China’s chemicals industry.

“This decision aligns our petrochemicals business in China with our global focus on areas where BP has leading proprietary technologies and competitive advantage,” BP’s CEO for Global Petrochemicals Rita Griffin said in a statement.

“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.”