bp Sells $1.5 Billion Stake in Permian, Eagle Ford Midstream Assets to Sixth Street
bp agreed to sell a $1.5 billion minority stake in its Permian and Eagle Ford midstream assets to Sixth Street, while retaining operatorship and majority ownership. The deal supports bp’s plan to raise $20 billion through divestments by 2027.
(P&GJ) — bp has agreed to sell non-controlling interests in its Permian and Eagle Ford midstream assets to investment firm Sixth Street for $1.5 billion, part of the company’s ongoing effort to streamline its U.S. onshore portfolio and meet its multiyear divestment target.
The deal, involving assets operated by bpx energy—bp’s U.S. onshore oil and gas business—includes pipelines and processing facilities that move production from wells in Texas to third-party systems. bp will remain the operator and retain majority ownership of the assets.
The transaction is structured in two phases, with approximately $1 billion paid upon signing and the remaining balance expected by the end of 2025, subject to regulatory approvals.
Following completion, bpx’s ownership interest in the Permian midstream assets will fall to 51% from 100%, and its Eagle Ford ownership will drop to 25% from 75%. Sixth Street will hold the remaining, non-operating stakes.
The bpx midstream network includes four central processing facilities in the Permian Basin—Grand Slam, Bingo, Checkmate and Crossroads—that connect production to downstream customers and third-party pipelines.
“We are pleased to welcome Sixth Street as a co-owner in our Permian and Eagle Ford midstream assets,” said Kyle Koontz, CEO of bpx energy. “We recognized early on that investing in midstream would be an important ingredient to our success in these basins in terms of driving value, flow assurance, and lowering emissions. This transaction reinforces that we are on track to maximize the return on our investment in these basins and allows us to continue operating them safely and efficiently.”
bp said the sale supports its target of $20 billion in divestments by the end of 2027, with a “material contribution” expected from this transaction toward the 2025 total.