The sale is the energy giant’s next strategic step in “reinventing BP” and helping it become a lower carbon company.
It has interests in 14 manufacturing plants in Asia, Europe and the US and in 2019 produced 9.7 million tonnes of petrochemicals.
The deal is expected to be completed by the end of 2020.
Bernard Looney, BP Chief Executive Officer said: “This is another significant step as we steadily work to reinvent BP.
“As we work to build a more focused, more integrated BP, we have other opportunities that are more aligned with our future direction. Today’s agreement is another deliberate step in building a BP that can compete and succeed through the energy transition.”
In total, the petrochemicals business included in the transaction currently employ more 1,700 staff worldwide. These staff are expected to transfer to INEOS on completion of the sale.