As per the terms of the agreement, BP will sell its 100% interest in BP Chemicals Malaysia (BPCM) which is located at Kuantan.
The BPCM PTA plant has a nameplate production capacity of 610,000 tons per year.

BP Asia aromatics business head James Yim said the plant is well placed in the regional market.

"RECRON Malaysia, part of the Reliance Group, is already our largest customer in Malaysia and Reliance Industries is a significant feedstock supplier at Kuantan, so Reliance is a natural owner of this plant," Yim added.

BP Petrochemicals chief executive Nick Elmslie said the company will focus on developing new technologies and using them in growing and Organisation for Economic Co-operation and Development markets.

"We are also building new revenue streams by licensing our PTA and paraxylene technologies," Elmslie said.

Both the companies are expecting the deal to be closed in 2012.