bp divests non-controlling interests in US onshore midstream assets for $1.5 billion
BP sells non-controlling stakes in its Permian and Eagle Ford midstream infrastructure to Sixth Street for $1.5 billion while retaining operational control.
| Sectors | Oil, Gas, Transport & Storage, Gas Transport & Storage |
|---|---|
| Themes | Investments & Transactions, Project Development, Financing |
| Companies | BP |
| Countries | United Kingdom, United States |
British oil giant BP announced it has reached an agreement to divest non-controlling interests in midstream assets located in the Permian and Eagle Ford basins to Sixth Street-managed funds for a total of $1.5 billion. The deal allows BP’s US onshore oil and gas subsidiary, bpx energy, to retain full operational control of the assets while selling a minority stake.
Deal Structured in Two Phases
The transaction will be settled in two phases. A first payment of $1 billion is due upon signing, with the balance expected to be paid by the end of the year, subject to regulatory approvals. This deal will enable BP to unlock capital from its infrastructure while maintaining control over key midstream assets in the United States.
The assets include pipelines and processing facilities within the two basins, notably four central processing facilities in the Permian – Grand Slam, Bingo, Checkmate, and Crossroads. These infrastructures link wells to third-party pipeline systems, transporting oil and gas to customers.
Reduced Ownership Without Loss of Control
After both phases of the transaction are completed, bpx energy’s stake in the Permian midstream assets will drop to 51% from 100%, while its stake in the Eagle Ford midstream assets will reduce to 25% from 75%. Sixth Street will hold the remaining non-operating interests.
This move aligns with BP’s asset divestment strategy, which targets $20 billion in asset sales by the end of 2027. As outlined in its February 2025 Capital Markets Update, BP aims to achieve a significant portion of this goal by 2025.
Leveraging Existing Investments
The transaction also highlights the value BP has unlocked from its midstream infrastructure investments. Kyle Koontz, CEO of bpx energy, noted that the deal would allow the company to “maximize returns” from its assets in both basins while continuing to operate them “safely and efficiently.”
