BP Sells $1.5B Stakes in US Permian, Eagle Ford Midstream Assets

BP has agreed to sell non-controlling interests in its US onshore midstream assets in the Permian and Eagle Ford basins to funds managed by Sixth Street for $1.5 billion. The transaction, structured in two phases with about $1 billion paid upon signing and the remainder expected by year-end pending regulatory approval, will reduce BP's ownership in the Permian assets to 51% from 100% and in the Eagle Ford assets to 25% from 75%, while bpx Energy will remain the operator. This divestment is part of BP's strategy to improve profitability and meet its target of $20 billion in total divestments by the end of 2027, as the company aims to cut costs and enhance investor confidence. bpx Energy's CEO Kyle Koontz highlighted that the deal helps maximize returns on investments in these basins and supports BP's broader strategic goals. The assets include key pipelines and processing facilities connecting BP's wells to customers, ensuring continued operational efficiency. This move follows leadership changes at BP emphasizing urgency in asset sales and cost-cutting measures.