Compañía Española de Petróleos, S.A. (Cepsa) is considering the sale of a chemical plant in Shanghai as the oil and gas company pivots to a greener strategy across its various business lines, according to three sources familiar with the situation. A sale would see Cepsa's exit from China and comes after the company abandoned a plan to sell its entire chemical business due to disappointing offers, according to sources close to the negotiations. A spokesperson for Cepsa declined to comment.

Cepsa, owned by Abu Dhabi state investor Mubadala and private equity Carlyle, has unveiled an up to €8 billion ($8.8 billion) investment plan that will see the company generate the majority of its core earnings from sustainable businesses by 2030. Cepsa owns 75% of the chemical plant situated in Shanghai, which produces phenol, acetone and cumene, with the remaining 25% in the hands of Sumitomo Corporation. Cepsa is working with advisors on a sale, the sources said.