Fmr. Energy Minister- BP’s billion dollar sale of petrochem. business could impact T&T

Fmr. Energy Minister- BP’s billion dollar sale of petrochem. business could impact T&T

Former Energy Minister Kevin Ramnarine said BP’s decision to sell its global petrochemical business is yet another sign of the major changes taking place in the company.

In a statement, Ramnarine said BP’s global petrochemical business includes a 36.9% stake in Atlas Methanol in Point Lisas.

“This latest sale follows on announcements of staff cuts of 10,000 workers and a write down of $17.5 billion in value.”

“The latter is an indication that the oil and gas fields, including those in T&T, under BP’s control are valued less than previously thought.”

He said the economic impact of Covid 19 and the oil pricing war in the first quarter of 2020 would have no doubt driven these decisions.

“The sale of its global petrochemical business is part of a wider strategy of divestiture aimed at raising $15 billion.”

BP has also committed to “net zero” carbon emissions by 2050.

According to Ramnarine, it is inevitable that these changes will eventually cascade down to T&T.

“Given that BP is the largest economic player in the T&T economy, it is important that the Government and policy makers are cognizant of the changes taking place with BP plc.”

“Unfortunately,” said Ramnarine, “I get the impression that this is not the case and we are not adapting to the changing global energy environment.”

On Monday, BP announced that it has agreed to sell its global petrochemicals business to INEOS for a total consideration of $5billion, subject to customary adjustments.

The sale includes BP’s 36.9% stake in the Atlas Methanol Plant in Trinidad.

According to the release, the sale agreement includes the whole of bp’s aromatic and acetyls businesses, including assets, technology and licenses, and related assets.