BP Sells Malaysian Assets to Petronas

Company is selling off up to $30 billion of assets to cover costs of oil spill

BP has agreed to sell some of its Malaysian assets to local state energy firm Petronas for $363 million, the group announced on Sept. 1.

"The agreement concerns BP's 15% interest in Ethylene Malaysia and 60% interest in Polyethylene Malaysia," the company said.

Both production facilities are operated by Petronas, and are located at Kertih on the eastern coast of Malaysia. Petronas, Malaysia's biggest company in terms of profit, assets and revenue, saw its net profit plunge 23.2% due to weak demand and low oil and gas prices in the group's last fiscal year that ended on March 31.

BP is seeking to sell off up to $30 billion of assets over the next 18 months as it faces spiraling costs from the Gulf of Mexico oil spill disaster.

At the start of August, the group agreed to offload its Colombian business for $1.9 billion to national oil company Ecopetrol and Talisman of Canada.

Petronas, Malaysia's biggest company in terms of profit, assets and revenue, saw its net profit plunge 23.2 percent due to weak demand and low oil and gas prices in the group's last fiscal year that ended on March 31.

Copyright Agence France-Presse, 2010

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