BP to sell stake in Sinopec

Oil giant BP PLC said it will sell its remaining 2.1% stake in China Petroleum and Chemical Corp (Sinopec).

BP, formerly BP Amoco, is the world's number three integrated oil company, behind Royal Dutch/Shell and Exxon Mobil.

In a statement, the group said it will carry out the sale through a bookbuilt placing of the shares on public markets, to be handled by Morgan Stanley.

Gary Dirks president of BP China said: "The decision to sell our stake in Sinopec is entirely separate from our joint business activities with the company, to which we remain committed".

BP acquired the Sinopec shares when the company was floated in October 2000.

BP's decision to sell the shares comes a few weeks after it disposed of its 2.2% stake in PetroChina Co Ltd as part of the group's strategy to give up those businesses where it has very little holdings.

BP also reiterated that it will invest a further $3bn (€2.34bn) in China during the next five years, on top of the $4bn (€3.13bn) it has already spent on projects there.