BP sells stake in PetroChina

Anglo-American oil energy giant BP Plc on Monday sold its 2 percent stake in Chinese oil company PetroChina at a price of HK$3.70 per share raising some HK$13 billion (US$1.7 billion). The stake was acquired for HK$1.28 per share in the Chinese company's April 2000 IPO.

Sources at BP was quoted by FinanceAsia.Com as saying that the sale was not due to any misgivings about the Chinese oil industry nor specifically about PetroChina. Rather the stake was considered non-strategic and was always going to be sold.

Nevertheless the decision to sell comes at a time when analysts are looking into BP's strategy in the region. Just last week it was announced that the company was looking to offload its retail businesses in Malaysia and Singapore as well as sell a refinery in Singapore.

According to analysts who cover the stock, BP has been shifting its focus of attention east from Asia in recent years, more into Russia and Africa. One project the firm is fully committed to in Asia is the massive Tangguh LNG development in Indonesia. That project is still seeking offtake partners without which it cannot raise full project finance to complete the development.

Steve Lawrence, spokesman for BP in Hong Kong denies that the sales of the PetroChina stake and the service stations in Asean are in any way linked and are not a sign that Tangguh needs more equity finance.(*)