BP PLC · 6-K · For 4/27/04

Filed On 4/27/04 6:53am ET   ·   SEC File 1-06262   ·   Accession Number 1191638-4-755

Report of a Foreign Private Issuer   ·   Form 6-K
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 6-K         Restructure Proposals                                  3±    14K 

Sponsored Ads...

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 6-K

Report of Foreign Issuer

Pursuant to Rule 13a-16 or 15d-16 of
 the Securities Exchange Act of 1934

for the period ended 27 April 2004

 BP p.l.c.
 (Translation of registrant's name into English)

1 ST JAMES'S SQUARE, LONDON, SW1Y 4PD, ENGLAND
(Address of principal executive offices)

     Indicate  by check mark  whether the  registrant  files or will file annual
reports under cover Form 20-F or Form 40-F.                           

Form 20-F        |X|          Form 40-F             
                ---------------               ----------------

     Indicate by check mark whether the registrant by furnishing the information
     contained in this Form is also thereby  furnishing  the  information to the
     Commission  pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934.                                                                 

    Yes                            No        |X|
                ---------------               ----------------

April 27, 2004                                                                  

BP PLANS TO SELL OVER 50% OF PETROCHEMICALS 
BUSINESS - AND PREPARES FOR IPO 

BP announced today that it plans to consolidate the Olefins and Derivatives     
(O&D) division of its petrochemicals business into a stand-alone entity able to 
operate separately from the BP Group.                                           

The new O&D business will incorporate more than half of the $13 billion of      
operating capital employed in BP's petrochemicals portfolio, giving it the scale
to be a major independent player in the global petrochemicals sector.           

It will be headed by Ralph Alexander, who was today named as chief executive of 
BP's petrochemicals business with effect from July 1, 2004.                     

BP said it plans to sell O&D in due course, possibly through an Initial Public  
Offering, depending on market circumstances and necessary approvals, in the     
second half of 2005.                                                            

The Group intends to retain the balance of its petrochemicals portfolio,        
comprising the aromatics and acetyls businesses. BP views these as "advantaged  
products" where BP has leading proprietary technology and strong positions in   
growing Asian markets.                                                          

Lord Browne spelt out BP's determination to tackle the continuing poor returns  
of its petrochemicals segment overall at a strategy presentation to investors in
London and New York last month.                                                 

He said future investment would focus more on paraxylene, PTA and acetic acid,  
and less on olefins and derivatives which form the bulk of BP's petrochemical   
operations in Europe.                                                           

"We have now concluded that divesting O&D - perhaps by means of an IPO, subject 
to market conditions and any necessary consents - is likely to deliver the best 
returns to our shareholders and to be in the best long-term interests of the O&D
business itself," Browne said today.                                            

Current chief executive of BP Petrochemicals, Iain Conn, said: "Our O&D         
sub-segment is one of the highest-quality portfolios of its kind in the         
petrochemicals industry. It has a global network of manufacturing sites, good   
technology, a fine range of products and strong market positions. As a          
free-standing entity it will be a significant competitor in its sector."        

Notes to Editors:                                                               

- At a strategy presentation on March 29, 2004, Lord Browne said future     
 investment would focus more on so-called "advantaged products", including
  paraxylene, PTA and acetyls which were strong in growing Asian markets and
where BP has a proprietary technological lead, and less on olefins and  
  derivatives which dominated the company's portfolio in the more fragmented
and lower-growth European markets.                                      

- The O&D business employs approximately 7,500 people in 24 locations       
worldwide, chiefly the US and Europe. Major petrochemicals sites include
Grangemouth in Scotland, Lavera in France, Koln and Gelsenkirchen in    
 Germany, and Lima, Chocolate Bayou and Green Lake in the US and the SECCO
joint venture in China.                                                 

- BP recently announced the intended sale of its Fabrics & Fibres and its   
Linear & Poly Alpha Olefins businesses. The intention to sell these     
businesses remains unaffected by this announcement, but BP will consider
whether or not to include the sale of the Linear & Poly Alpha Olefins   
businesses in the planned IPO of O&D.                                   

- BP's products are used to make a wide variety of plastic goods, including 
food and drink containers and wrappings, pipework, automotive parts and 
   mouldings of all kinds. Current worldwide production capacity of O&D plants
is some 20 million tonnes per year of a BP Petrochemicals total of 34.5 
million tonnes.                                                         

- O&D products include olefins (ethylene and propylene) and their           
    derivatives such as acrylonitrile, polyethylene, polypropylene and solvents.

- Iain Conn will become a Group Executive Officer of BP with effect from    
    July 1, 2004 and assume Dick Olver's portfolio of responsibilities, with the
exception of the Western Hemisphere.                                    

Full details of BP Petrochemicals sites, products, production capacities and    
regional summaries can be found in the "financial and operating information"    
download section of the bp.com website.                                         

http://www.bp.com/liveassets/bp_internet/globalbp/STAGING/global_assets/        
downloads/F/financial_and_operating_information_1999_2003_petrochemicals.pdf .  

Legal notice: This press release does not constitute an offer of any securities 
for sale.                                                                       

Further media enquiries:                                                        

BP press office - tel: +44 (0)20 7496 4827 / 4708 / 5256 / 4358 / 4624 / 4324 / 
4076                                                                            

- ENDS -

            SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the        
registrant has duly caused this report to be signed on its behalf by the        
undersigned, thereunto duly authorized.                                         

           BP p.l.c.
            (Registrant)

Dated: 27 April 2004                              /s/ D. J. PEARL               
                                                  ..............................
                               D. J. PEARL
                                            Deputy Company Secretary

Dates Referenced Herein   and   Documents Incorporated By Reference

This 6-K Filing		Date		Other Filings
		3/29/04		6-K
Filed On / Filed As Of / For The Period Ended		4/27/04		6-K
		7/1/04		6-K
Top				List All Filings