PETRONAS TO ACQUIRE BP'S STAKES IN EMSB, PEMSB FOR US$363 MLN

KUALA LUMPUR, Sept 1 (Bernama) -- Petroliam Nasional Bhd (Petronas), Malaysia's
national petroleum company, will acquire BP's 15 per cent and 60 per cent
interests in Ethylene Malaysia Sdn Bhd (EMSB) and Polyethylene Malaysia Sdn Bhd
(PEMSB) respectively for US$363 million cash (US$1 = RM3.14).

Petronas said under the agreement, the payment was inclusive of a balance sheet
adjustment of US$13 million and the repayment of a shareholder loan of US$53
million.

"Both parties are expected to complete the transaction by year-end," it said in
a statement here Wednesday.

Petronas' executive vice president of downstream business, Wan Zulkiflee Wan
Ariffin, said the purchase would enable Petronas to strengthen its presence in
the olefins and polyolefins businesses in the region.

Currently, EMSB owns an ethylene plant and PEMSB, a polyethylene plant, located
within the Petronas Petroleum Industry Complex in Kertih, in east coast state of
Terengganu.

Both plants are operated by Petronas.

EMSB's olefin cracker currently produced about 400,000 tonnes per annum of
ethylene, a basic petrochemical feedstock. PEMSB's polyethylene plant produced
some 300,000 tonnes per annum of polyethylene, used primarily for packaging and
film manufacture.

EMSB is currently owned by Petronas (72.5 per cent), BP (15 per cent) and
Idemitsu of Japan (12.5 per cent). PEMSB is owned by BP (60 per cent) and
Petronas (40 per cent).
-- BERNAMA



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