BP divests non-controlling interests in its US onshore midstream assets to Sixth Street for $1.5 billion, enhancing financial flexibility while retaining operational control.

Information on the Target

BP has reached an agreement to divest its non-controlling interests in key midstream assets located in the Permian and Eagle Ford basins, transferring ownership to Sixth Street-managed funds for a sum of $1.5 billion. This transaction is a strategic move for bp’s US onshore business, bpx energy, which will continue to operate all associated assets despite the change in ownership structure. Following this deal, bpx's ownership in the Permian midstream assets will decrease from 100% to 51%, and its stake in the Eagle Ford midstream assets will reduce from 75% to 25%.

The primary assets involved include critical pipelines and facilities that transport oil and gas to third-party pipeline systems. These transport systems connect production wells directly to customers, featuring four significant central processing facilities in the Permian basin – namely, Grand Slam, Bingo, Checkmate, and Crossroads. The structure of this transaction includes a substantial initial payment of approximately $1 billion at signing, with the remaining balance to be settled by year-end, subject to regulatory oversight.

Industry Overview in the Target’s Specific Country

The midstream sector in the United States has seen robust growth in recent years, particularly driven by the shale oil and gas boom. Midstream companies focus on the transportation, storage, and processing of oil and gas, m