BP to sell olefins unit

BP PLC is putting its underperforming olefins business up for sale, a deal that could potentially net the company US$2 billion to US$3.5 billion. Olefins represent about half of the company’s total petrochemicals business.
BP’s CEO, John Browne, said the olefins business was being disposed because it was returning only half the cash that other petrochemicals were for the company. Analysts say BP will still have to take a multi-billion dollar write-off after the sale to make up the difference for the roughly US$7 billion of capital tied up in the olefins production units.