bp Sells Non-Controlling US Midstream Interests for $1.5 Billion
- bp divests non-controlling interests in Permian and Eagle Ford midstream assets to Sixth Street for $1.5 billion.
- The transaction includes $1 billion paid upon signing, with the remainder expected by year-end, pending regulatory approvals.
- bpx's ownership in Permian assets reduces to 51% and in Eagle Ford to 25%.
- bp targets $20 billion in divestments by 2027.
Transaction Overview
bp has agreed to sell non-controlling interests in its Permian and Eagle Ford midstream assets to Sixth Street for $1.5 billion. The deal allows bp to unlock capital while maintaining operatorship and control of key midstream assets.
Financial Details
The transaction is structured in two phases: approximately $1 billion is paid upon signing, with the remaining balance expected by the end of the year, subject to regulatory approvals.
Asset Details
The bpx midstream assets include pipelines and facilities in the Eagle Ford and Permian basins, such as four central processing facilities in the Permian. These assets connect wells to third-party pipeline systems, facilitating oil and gas transport to customers.
Ownership Changes
Upon completion, bpx's ownership in the Permian midstream assets will decrease from 100% to 51%, and in the Eagle Ford from 75% to 25%. Sixth Street will hold the remaining non-operating interests.
Strategic Goals
This transaction contributes significantly to bp's divestment target of $20 billion by the end of 2027, as outlined in its Capital Markets Update in February 2025.
Source: bp