One of Rigzone’s top downstream-related articles this past week in terms of reader pageviews was BP plc’s report that it is exiting the petrochemicals business. Read on to learn more about this pending $5 billion transaction, along with other recent major developments.
BP to Raise $5B via Petchems Business Sale
BP revealed this week that it is getting out of the petrochemicals business by selling its global petchems portfolio to INEOS for total consideration of $5 billion. The deal encompasses BP’s aromatics, acetyls and related businesses and includes 15 sites in the Americas, Europe and Asia. It will also help BP to achieve its $15 billion divestment target sooner than expected.
Exxon Reportedly Preps for US Job Cuts
Citing unnamed sources, Bloomberg reported that from five to 10 percent of Exxon Mobil Corp.’s U.S.-based employees subject to performance evaluations could leave the company this year. The news service added that the supermajor would likely classify the cuts as performance-based rather than layoffs. The report also noted that such evaluations typically apply to white-collar positions in areas such as engineering, finance and project management. According to ExxonMobil, the company has no specific headcount-reduction target.
More Large Impairments Expected Across Oil and Gas
BP plc, Royal Dutch Shell plc and other majors are reassessing their long-term oil price assumptions and investment hurdle rates, according to researchers with Wood Mackenzie. Aa a result, the consultancy expects the process to drive companies to report a series of large impairments across the oil and gas industry. In addition, a Wood Mackenzie exec pointed out the impairments reflect “fundamental change hitting the oil and gas sector” – not a mere accounting technicality.
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