BP to Sell Alabama Petrochemical Complex to Indorama Ventures for Undisclosed Sum

By Razak Musah Baba

LONDON--BP PLC (BP.LN) is selling its petrochemical complex in Decatur, Alabama, to Indorama Ventures Public Co. Ltd. (IVL.TH), for an undisclosed sum, as part BP's plan to restructure its global petrochemicals business.

"This agreement allows us to focus investment on our world-class PTA [purified terephthalic acid] production facility in Cooper River, South Carolina, and a key PTA feedstock producer in Texas City, Texas, as well as to maintain a strong position in the important U.S. petrochemicals industry," Rita Griffin, chief operating officer of BP Global Petrochemicals, said.

Under the terms of the agreement, Indorama Ventures will purchase the Decatur complex including working capital and related infrastructure and assume certain contracts with suppliers and customers.

The parties anticipate the deal to be closed in early 2016 when employees will transfer to the new owner.

Also Wednesday BP said it is spending $200 million to upgrade its Cooper River, S.C., plant and its sister facility in Geel, Belgium--the largest PTA-producing sites in the Americas and Europe, respectively.

The investment will enable the two facilities to lower operating costs, improve reliability and reduce emissions, it said.

BP said it has substantially completed its $10 billion divestment program for the 2014 and 2015 period.

The company expects $3 billion to $5 billion of divestments in 2016 and ongoing divestments averaging around $2 billion to $3 billion a year thereafter.

-Write to Razak Musah Baba at [e-mail]; Twitter: @Raztweet

(END) Dow Jones Newswires

January 06, 2016 11:21 ET (16:21 GMT)

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