BP PLC said Monday that it has agreed to sell its global petrochemicals business to INEOS for $5 billion.

The British energy giant said that INEOS will pay a $400 million deposit and a further $3.6 billion on completion of the deal, which is expected by the end of 2020. The remaining $1 billion will be deferred over three installments until June 2021, BP said.

BP's petrochemical business is focused on aromatics and acetyls. It has interests in 14 plants in Asia, Europe and the U.S., and achieved production of 9.7 million metric tons last year.

Chief Executive Bernard Looney said that the divestment is another step in building a BP that can compete and succeed through the energy transition. He noted that it would take considerable capital for the company to grow the petrochemicals businesses.

Chief Financial Officer Brian Gilvary said that with this deal BP has met its $15 billion target for agreed divestments a year ahead of schedule.