Oil major BP sells petrochemicals arm for €4bn in move towards greener energy

Oil major BP sells petrochemicals arm for €4bn in move towards greener energy

Oil major BP has agreed to sell its global petrochemicals business to UK chemicals company Ineos for $5bn (€4.5bn), pulling out of a sector widely seen as a key driver of oil demand growth in the coming decades.

The surprise move means BP has hit its $15bn asset sales target a year ahead of schedule as CEO Bernard Looney prepares the company for a shift to low-carbon energy.

Meanwhile, Irish exploration company PetroNeft Resources remains on the look-out for a buyer for its business.

The company’s sole operational focus is two licences in the Tomsk region of Siberia.

The company said it is continually in discussions with prospective suitors.

“We continue to meet with potential investors and partners,” said chief executive David Sturt.

“While Covid has impacted on the climate for corporate activity, the operational work we are doing will stand to us in terms of increasing the attractiveness of our assets,” he said.

The company is continuing improvement work on its licences and is increasing daily production rates, which reached 1,614 barrels of oil per day in the first quarter of the year.

PetroNeft has been looking, for some time, to significantly boost the value of its chief assets ahead of a probable sale of the company.

-additional reporting Reuters

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