The agreement concerns BP's 100% equity in BP Chemicals (Malaysia) Sdn Bhd (BPCM), located at Kuantan on the east coast of Malaysia. BPCM's PTA plant, commissioned in 1996, has nameplate production capacity of 610,000 tonnes per year.
"Reliance (through Reliance Global Holdings Pte. Ltd) has agreed to purchase BP's interest in BPCM for $230 million in cash and both parties anticipate completing the transaction in 2012," it said.
Nick Elmslie, chief executive of BP Petrochemicals said: "BP has a major, global PTA business, with around one fifth of global PTA production capacity and a track record of leading technology. We will continue to concentrate our PTA strategy on deploying new technologies into high growth markets like China where we are in the middle of a considerable expansion programme, and in OECD markets where our technology gives us an advantage and high utilization rates".
All current staff of BPCM is expected to transfer to the new owners under equivalent terms and conditions. BP's acetic acid manufacturing and marketing business in Malaysia is unaffected by this sale, the statement said.
James Yim, head of BP's aromatics business in Asia, said: "This is an efficient plant with a good market position in the region. RECRON Malaysia, part of the Reliance Group, is already our largest customer in Malaysia and Reliance Industries is a significant feedstock supplier at Kuantan, so Reliance is a natural owner of this plant."