BP has agreed to sell non-controlling interests in its US midstream assets in the Permian and Eagle Ford basins to Sixth Street for $1.5bn. The deal is in two phases, with $1bn paid upon signing and the rest pending regulatory approvals. The assets include pipelines and facilities in both basins.

The assets consist of four central processing facilities that connect oil and gas wells to pipeline systems. The transaction is part of BP’s strategy to unlock capital while retaining operational control over the assets. bpx energy will continue to operate the assets in the Permian and Eagle Ford basins.

Upon closing, bpx energy’s ownership in the Permian assets will decrease to 51%, and in the Eagle Ford assets to 25%. Sixth Street will acquire the remaining non-operating interests. The sale will support BP’s goal of $20bn in divestments by 2027, as outlined in February 2025.

Morgan Stanley & Co. served as financial adviser and Hunton Andrews Kurth as lead legal adviser to bp on this transaction. The deal is seen as a move to maximize returns and drive value in the Permian and Eagle Ford basins. CEO Kyle Koontz sees it as crucial for success in terms of value and emissions reduction.

Read more at Yahoo Finance: BP to sell interests in US midstream assets to Sixth Street for $1.5bn