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 27 April 2004
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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April 27, 2004
BP PLANS TO SELL OVER 50% OF PETROCHEMICALS
BUSINESS - AND PREPARES FOR IPO
BP announced today that it plans to consolidate the Olefins and Derivatives
(O&D) division of its petrochemicals business into a stand-alone entity able to
operate separately from the BP Group.
The new O&D business will incorporate more than half of the $13 billion of
operating capital employed in BP's petrochemicals portfolio, giving it the scale
to be a major independent player in the global petrochemicals sector.
It will be headed by Ralph Alexander, who was today named as chief executive of
BP's petrochemicals business with effect from July 1, 2004.
BP said it plans to sell O&D in due course, possibly through an Initial Public
Offering, depending on market circumstances and necessary approvals, in the
second half of 2005.
The Group intends to retain the balance of its petrochemicals portfolio,
comprising the aromatics and acetyls businesses. BP views these as "advantaged
products" where BP has leading proprietary technology and strong positions in
growing Asian markets.
Lord Browne spelt out BP's determination to tackle the continuing poor returns
of its petrochemicals segment overall at a strategy presentation to investors in
London and New York last month.
He said future investment would focus more on paraxylene, PTA and acetic acid,
and less on olefins and derivatives which form the bulk of BP's petrochemical
operations in Europe.
"We have now concluded that divesting O&D - perhaps by means of an IPO, subject
to market conditions and any necessary consents - is likely to deliver the best
returns to our shareholders and to be in the best long-term interests of the O&D
business itself," Browne said today.
Current chief executive of BP Petrochemicals, Iain Conn, said: "Our O&D
sub-segment is one of the highest-quality portfolios of its kind in the
petrochemicals industry. It has a global network of manufacturing sites, good
technology, a fine range of products and strong market positions. As a
free-standing entity it will be a significant competitor in its sector."
Notes to Editors:
- At a strategy presentation on March 29, 2004, Lord Browne said future
investment would focus more on so-called "advantaged products", including
paraxylene, PTA and acetyls which were strong in growing Asian markets and
where BP has a proprietary technological lead, and less on olefins and
derivatives which dominated the company's portfolio in the more fragmented
and lower-growth European markets.
- The O&D business employs approximately 7,500 people in 24 locations
worldwide, chiefly the US and Europe. Major petrochemicals sites include
Grangemouth in Scotland, Lavera in France, Koln and Gelsenkirchen in
Germany, and Lima, Chocolate Bayou and Green Lake in the US and the SECCO
joint venture in China.
- BP recently announced the intended sale of its Fabrics & Fibres and its
Linear & Poly Alpha Olefins businesses. The intention to sell these
businesses remains unaffected by this announcement, but BP will consider
whether or not to include the sale of the Linear & Poly Alpha Olefins
businesses in the planned IPO of O&D.
- BP's products are used to make a wide variety of plastic goods, including
food and drink containers and wrappings, pipework, automotive parts and
mouldings of all kinds. Current worldwide production capacity of O&D plants
is some 20 million tonnes per year of a BP Petrochemicals total of 34.5
million tonnes.
- O&D products include olefins (ethylene and propylene) and their
derivatives such as acrylonitrile, polyethylene, polypropylene and solvents.
- Iain Conn will become a Group Executive Officer of BP with effect from
July 1, 2004 and assume Dick Olver's portfolio of responsibilities, with the
exception of the Western Hemisphere.
Full details of BP Petrochemicals sites, products, production capacities and
regional summaries can be found in the "financial and operating information"
download section of the bp.com website.
http://www.bp.com/liveassets/bp_internet/globalbp/STAGING/global_assets/
downloads/F/financial_and_operating_information_1999_2003_petrochemicals.pdf .
Legal notice: This press release does not constitute an offer of any securities
for sale.
Further media enquiries:
BP press office - tel: +44 (0)20 7496 4827 / 4708 / 5256 / 4358 / 4624 / 4324 /
4076
- 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: 27 April 2004 /s/ D. J. PEARL
..............................
D. J. PEARL
Deputy Company Secretary