BP is reportedly looking to sell its stake in a China-based petrochemical joint venture with Sinopec.
Sources told Reuters that BP may sell its 50 percent stake in SECCO, a joint-venture formed with China’s Sinopec in 2001.
The stake could be worth between $2 billion to $3 billion, sources told the news wire.
Sinopec has a right to first refusal and told Reuters that it was discussing conditions proposed by BP but it has not made a decision yet.
Sources told Reuters that BP is working Morgan Stanley on the deal.
Neither BP nor Morgan Stanley have commented on the report.
BP holds a 50 percent stake in SECCO, Sinopec holds a 30 percent stake and Shanghai Petroleum Company, a Sinopec’ subsidiary, holds a 20 percent stake.
SECCO is BP’s single largest investment in China, according to the company’s website.
The facility produces ethylene and propylene as well as acrylonitrile, polyethylene, polypropylene, styrene, polystyrene, butadiene and other products.
The venture is located in Caojing and includes China’s largest single train ethylene cracker that is capable of producing 1.3 million tonnes of ethylene per year.
BP posted a $1.41 billion loss for the second quarter of 2016 compared to a $5.82 billion loss a year ago.
BP’s upstream segment reported a $109 million replacement cost (RC) profit before interest and tax, down from a $228 million RC profit in the prior year quarter.
The downstream segment earned an RC profit of $1.40 billion for the second quarter compared to $1.62 billion in the year ago quarter.