BP has selected St Modwen as development partner for its 1,000ha portfolio of brownfield sites in south Wales, Scotland, the Midlands and South East England.
The two companies say they will now progress with concluding the acquisition of the portfolio before commencing an extensive programme of remediation.
The sites will be developed into a mix of uses which will be predominantly employment-led commercial.
"Cleaning up the landscape and transforming sites into attractive developments, in which people can work and live, is at the heart of what St Modwen does," said St Modwen chief executive Bill Oliver.
"There is still a long process to go through before we commence the remediation and subsequent development but we look forward to continuing our relationship with BP on the successful regeneration of these sites."
BP has already worked with St Modwen on the redevelopment of its 400ha refinery at Llandarcy near Neath into Coed D'Arcy urban village.
The new acquisitions will be for a nominal consideration, with an undisclosed dowry from BP to cover remediation liabilities. The companies expect remediation costs to be broadly cash neutral over 15 years as value is unlocked from the sites.
The sites include 400ha sites at Baglan Bay and Crymlyn Burrows, a 16-mile long canal in Neath, 40ha sites in Llandarcy Park, Barry, Pumpherston and Addiewell and smaller sites.
