(EnergyAsia, October 8 2012, Monday) — BP said it has agreed to sell off all its interests in purified terephthalic acid (PTA) production in Malaysia to India’s Reliance Global Holdings Pte Ltd for a total of US$230 million.

The agreement covers the UK major’s 100% equity in BP Chemicals (Malaysia) Sdn Bhd (BPCM) located in Kuantan town on the east coast of Malaysia.

The transaction is expected to complete before the end of 2012, with BPCM’s staff to be transferred to the new owners under equivalent terms and conditions.

BP’s acetic acid manufacturing and marketing business in Malaysia is unaffected by the sale.

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.”

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 utilisation rates.

“We are also building new revenue streams by licensing our PTA and paraxylene technologies.”