BP to Sell Stake in PetroChina

BP intends to sell its 2 percent equity stake in PetroChina Company Limited. The company will carry out the sale through a bookbuilt placing of the shares on public markets.

BP acquired the stake of approximately 3.5 billion shares when 10 percent of PetroChina was floated on international markets in early 2000. The acquisition was a strategic move on BP's part to support PetroChina's entry to the equity market and build relationships that would help BP expand its Chinese business.

Gary Dirks, president of BP China, said: 'Our equity investment in PetroChina has been very successful and we believe now is an appropriate time to divest the shares. BP remains committed to our business with PetroChina - and in China as a whole, where we expect to invest a further $3 billion over the next five years.'

BP is one of the largest foreign investors in China's energy and petrochemicals sectors. The company's activities in China include production and import of natural gas; supply of aviation fuel; import and marketing of liquefied petroleum gas; fuels retailing; lubricants blending and sales and petrochemical manufacturing.

The placing of the shares will be arranged by Goldman Sachs International.