BP announced on Friday that it is to sell Innovene, its olefins, derivatives and refining group, in a 9 billion deal to UK-based INEOS.

The 9 billion US dollar 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 when 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,"he said.

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.

Innovene is the 100 per cent BP-owned group created in April 2005. It has 8,000 staff and manufacturing facilities in seven countries in North America and Europe.

BP announced the separation of its olefins and derivatives business in April 2004. It then added two refineries (Grangemouth, UK, and Lavra, France) to the business in November 2004, and created the whole 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 a turnover of 285 billion US dollars.

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.

Source: Xinhua