BP to sell some Malaysian assets to Petronas for $363 million

British oil giant BP today said that it has agreed to sell some of its Malaysian assets to local state energy firm Petronas for $363 million, as part of its plan to raise money to cover costs arising from the Gulf of Mexico oil spill.

BP is selling its 15-per cent stake in Ethylene Malaysia (EMSB), an ethylene and polyethylene production unit and 60 per cent stake in Polyethylene Malaysia (PEMSB).

Both these production facilities are operated by Petronas and are located at Kertih, on the east coast of Malaysia.

BP, which has been present in Malaysia since the 1960s, said that this sale does not affect its other businesses in Malaysia.

Under the terms of the sale, Petronas will, at closing, pay $363 million in cash to BP, inclusive of a balance sheet adjustment of $13 million and the repayment of a shareholder loan of $53 million.

 For EMSB BP will also receive an additional pre-closing dividend amounting to $48 million, subject to the board approval of EMSB.