bp divests non-controlling interests in U.S. onshore midstream assets for $1.5 B
- bp divests non-controlling interests in Permian and Eagle Ford midstream assets to private investor Sixth Street for $1.5 billion
- Agreement enables bp to unlock capital from infrastructure, while retaining operatorship and control of strategic midstream assets
- Transaction delivers a material contribution towards bp’s 2025 expected divestment proceeds and target of $20 billion of divestments by the end of 2027
bp has reached an agreement for Sixth Street-managed funds to purchase non-controlling interests in Permian and Eagle Ford midstream assets of bpx energy – bp’s US onshore oil and gas business. bpx will remain operator of all the assets.
The transaction has a total consideration of $1.5 billion and is structured in two phases: approximately $1 billion paid upon signing with the balance expected by the end of the year, subject to regulatory approvals.
The bpx midstream assets encompass bpx’s pipelines and facilities in the Eagle Ford and Permian basins, including four Permian central processing facilities – Grand Slam, Bingo, Checkmate and Crossroads. These assets connect wells to 3rd party pipeline systems, transporting the oil and gas to customers.
Following completion of both transactions, bpx’s ownership interest in the Permian midstream assets will move to 51% (from 100%), while bpx’s ownership interest in the Eagle Ford midstream assets will move to 25% (from 75%). Sixth Street will hold the remaining, non-operating interests.
Kyle Koontz, CEO of bpx energy, said: “We are pleased to welcome Sixth Street as a co-owner in our Permian and Eagle Ford midstream assets. We recognized 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 maximize the return on our investment in these basins and allows us to continue operating them safely and efficiently.”
At its Capital Markets Update in February 2025, bp said it is targeting $20 billion in divestments by the end of 2027.
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