BP Plc to sell 75 percent stake in PT Peni

Anglo-American energy giant BP Plc has decided to sell its 75 percent stake in PT Petrokimia Nusantara Interindo (PT Peni), the country?s largest petrochemical enterprise, Bisnis Indonesia daily reported on Friday.

The worsening condition of Peni?s operation had incited BP to decide to sell its shares in the company whose plant had been built with total funds of US$800 million, an industry source told the newspaper.

?There have been internal briefings about BP?s plan to sell its stake in Peni,? an executive of Peni said when confirmed by Bisnis Indonesia.

Another source said BP?s decision to sell its shares had been because it wanted to concentrate on its massive liquefied natural gas (LNG) project in Tangguh, Papua.

Peni?s plant, which started commercial operation in early 1990s, has capacity to turn out 450,000 tons of polyethylene annually.

Japanese investors Mitsui Corp and Sumitomo Corp together own 25 percent of Peni. (*)