BP to Sell Malaysian Business to Petronas

BP plans to sell its ethylene and polyethylene production interests in Malaysia to Petronas for $63m.

BP holds a 15% interest in Ethylene Malaysia (EMSB) and a 60% interest in Polyethylene Malaysia (PEMSB), which are both operated by Petronas and located at Kertih on the Malaysian east coast.

EMSB’s olefins cracker has a production capacity of approximately 440,000t of ethylene per year.

The firm is owned by Petronas, with a 72.5% stake, BP with 15% and Idemitsu with 12.5%.

PEMSB is owned by BP, which holds 60%, and Petronas, which has the remaining 40%.

The plant has a production capacity of 318,000t per year of polyethylene, which is used mainly for packaging and film manufacture while ethylene feedstock for the plant is supplied by EMSB.

BP Global Petrochemicals Business president Sue Rataj said while these are attractive businesses with strong domestic and regional markets, BP considers Petronas as its natural owner.