Oil and gas company BP has sold its global petrochemicals business for $5 billion to Ineos, part of BP's plan to shift activities to renewable sources of energy.

Both companies operate plants near Baton Rouge, and none of BP's Louisiana operations are part of the sale.

BP has a lubricants facility in Port Allen, which serves as a regional manufacturing and distribution center for BP Lubricants USA. The facility blends, packages and distributes Castrol motor oil and car care products for sale in the U.S. and for export to markets in the Caribbean, South America, Canada and Mexico.

Ineos has a plant in Plaquemine on about 17 acres on the Mississippi River with 53 employees and 40 contract workers on site. Ineos acquired the site in 2001 from Dow Chemical. The site produces ethanolamines used in pressure-treated wood, agricultural products, personal care, cosmetics, laundry detergents, pharmaceutical products, oil and gas treatment, and construction.

Ineos is buying several BP manufacturing facilities, including Cooper River in South Carolina; two in Texas City, Texas, and another in Trinidad and Tobago. 

The company said in a statement Monday that the overlap of the petrochemicals business with the rest of the company is “limited” and that it takes “considerable capital” to grow these businesses. Petrochemicals are derived from oil and gas production and used to make industrial products like plastics or paints, among other things.

BP CEO Bernard Looney said the sale represents "another deliberate step in building a BP that can compete and succeed through the energy transition.”

The proceeds will be used to strengthen the company's balance sheet and means it has reached its targeted amount of business sales a year earlier than scheduled.

Ineos will pay BP a deposit of $400 million and a further $3.6 billion on completion. An additional $1 billion will be deferred and paid in installments next year.

The transaction is expected to complete by the end of 2020.