SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
for the period ended 07 October, 2005
BP p.l.c.
(Translation of registrant's name into English)
1 ST JAMES'S SQUARE, LONDON, SW1Y 4PD, ENGLAND
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F.
Form 20-F |X| Form 40-F
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Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934.
Yes No |X|
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7 October, 2005
BP AGREES SALE OF PETROCHEMICALS BUSINESS TO INEOS FOR $9 BILLION
BP today announced that it is to sell Innovene, its olefins, derivatives and
refining group, to UK-based INEOS. The $9 billion cash sale, subject to
regulatory approvals, includes all Innovene's manufacturing sites, markets and
technologies. The sale is expected to be concluded early in 2006 at which time
payment will be received by BP.
"Innovene has proved to be a very attractive business to its peers in the
chemicals sector," said Lord Browne, BP Group Chief Executive. "This deal is the
very best of a number of good offers. I'm delighted with the outcome which is
excellent for BP's shareholders and for Innovene's future."
BP first announced the intention of separating its olefins and derivatives
business from its petrochemicals portfolio in April 2004 with an initial public
offering (IPO) as one, possible, disposal option. In the interim, it received a
number of approaches from companies considering a trade sale leading to this
decision instead of the IPO.
Browne said that the decision to sell Innovene in its entirety removed any
uncertainty around market conditions at the time of an IPO, as well as would-be
investors' concerns about BP's remaining stake and future intentions.
"Consistent with existing BP practice, we remain committed to returning excess
free cash flow, including the net proceeds of this sale, to shareholders," he
added.
"This is a transformational acquisition elevating INEOS to the world's fourth
largest independent petrochemicals company," said Jim Ratcliffe, INEOS Chief
Executive. "INEOS and Innovene share a BP heritage of high quality people,
assets and technology and are highly complementary businesses."
Innovene is the 100 per cent BP-owned group created in April 2005. It has 8,000
staff, manufacturing facilities in seven countries in North America and Europe;
$18 billion revenues in 2004; $13 billion of gross assets; $9.9 billion of net
assets; pre-tax profits (Jan-Jun 2005) of $0.7 billion; 18 million tonnes of
annual petrochemicals capacity and 412,000 barrels per day of crude oil refining
capacity.
Innovene's chief executive is Ralph Alexander and its chief financial officer is
Mark Tomkins. Innovene manufactures olefins and related products which are the
raw materials for plastics, packaging and textiles industries; and operates two
refineries in Europe.
BP was jointly advised by Goldman Sachs and Morgan Stanley on the IPO and sale.
Notes to editors:
BP announced the separation of its olefins and derivatives business in April
2004. It then added two refineries (Grangemouth, UK, and Lavera, France) to the
business in November 2004, and created the 100% BP-owned Innovene subsidiary in
April 2005.
BP is the world's second largest integrated oil and gas company, operating in
more than 100 countries with over 100,000 staff and turnover of $285 billion.
INEOS is a leading global manufacturer of speciality petrochemicals and
comprises 10 business units each with a major chemical company heritage. Its
production network spans 46 manufacturing facilities in 14 countries.
Innovene assets included in sale agreement:
North America Europe
Chocolate Bayou, Texas Grangemouth (chems/refinery), UK
Texas City (chems), Texas Lavera (chems/refinery), France
Hobbs Gas Fractionation Facility, Sarralbe, France
Texas
Battleground (ex-Deer Park), Texas Feluy, Belgium
Green Lake, Texas Geel (polypropylene), Belgium
Carson (chems), California Lillo, Belgium
Lima, Ohio Koln, (excluding ethylene oxide),
Germany
Whiting (chems), Indiana Marl, Germany
Joffre, Canada Rosignano, Italy
The NOVA Innovene joint venture
Further media enquiries:
BP: Press Office +44 (0)207 496 4076 / 4827 www.bp.com
INEOS: Press office +44 (0)2380 28 7081 / 7025 www.ineos.com
- ENDS -
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
BP p.l.c.
(Registrant)
Dated: 07 October, 2005 /s/ D. J. PEARL
..............................
D. J. PEARL
Deputy Company Secretary