British energy company bp said Monday it has agreed to sell minority stakes in its midstream assets in the Permian and Eagle Ford basins to funds managed by global investment firm Sixth Street for $1.5 billion, freeing up capital while keeping control of the operations.
The deal involves pipelines and processing facilities owned by bpx energy, bp’s US onshore oil and gas unit, which will continue to operate the assets. The transaction will be completed in two phases, with about $1 billion paid upfront and the remainder expected by year’s end, subject to regulatory approval.
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.
Once the sale is finalized, bpx’s ownership in the Permian midstream assets will fall to 51% from 100%, while its share in the Eagle Ford assets will drop to 25% from 75%. Sixth Street will hold the remaining non-operating interests.
The sale supports bp’s plan to raise $20 billion from divestments by the end of 2027, a target the company outlined during its Capital Markets Update in February.
By Handan Kazanci
Anadolu Agency
energy@aa.com.tr