BP to sell interests in US midstream assets to Sixth Street for $1.5bn
BP has agreed to sell non-controlling interests in its US midstream assets in the Permian and Eagle Ford basins to funds managed by Sixth Street for $1.5bn (£1.14bn).
The deal is structured in two phases, with an initial payment of around $1bn made upon signing and the remaining amount by the end of this year, pending regulatory approvals.
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BP’s US onshore subsidiary, bpx energy, will continue to operate the assets, which include pipelines and facilities in the Eagle Ford and Permian basins.
The assets comprise four central processing facilities – Grand Slam, Bingo, Checkmate and Crossroads – which link oil and gas wells to pipeline systems.
BP said the transaction is part of its strategy to unlock capital while maintaining operational control over these assets.
bpx energy CEO Kyle Koontz said: “We are pleased to welcome Sixth Street as a co-owner in our Permian and Eagle Ford midstream assets.
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By GlobalData“We recognised early on that investing in midstream would be an important ingredient to our success in these basins in terms of driving value, flow assurance and lowering emissions.
“This transaction reinforces that we are on track to maximise the return on our investment in these basins and allows us to continue operating them safely and efficiently.”
Upon closing, bpx energy’s ownership in the Permian assets will reduce from 100% to 51%, while its stake in the Eagle Ford assets will decrease from 75% to 25%.
Sixth Street will acquire the remaining non-operating interests.
BP said the sale will significantly support its goal of achieving $20bn in divestments by the end of 2027, as outlined during its Capital Markets Update in February 2025.
Morgan Stanley & Co. served as financial adviser and Hunton Andrews Kurth as lead legal adviser to bp on this transaction.
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