bp unlocks value, divests non-controlling interests in US onshore midstream assets for $1.5 billion

bp has reached an agreement for funds managed by Sixth Street to acquire non-controlling interests in the Permian and Eagle Ford midstream assets of bpx energy – bp’s U.S. onshore oil and gas subsidiary. bpx will continue to operate all of the assets.

The deal is valued at a total of $1.5 billion and will be executed in two phases: an initial payment of around $1 billion upon signing, with the remaining balance expected by year-end, pending regulatory approvals.

The bpx midstream portfolio includes pipelines and facilities in the Eagle Ford and Permian basins, among them four major Permian central processing facilities – Grand Slam, Bingo, Checkmate, and Crossroads. These assets link production wells to third-party pipeline systems, transporting oil and gas to customers.

Once both phases of the transaction are completed, bpx’s ownership in the Permian midstream assets will decrease from 100% to 51%, and its stake in the Eagle Ford midstream assets will move from 75% to 25%. Sixth Street will hold the remaining non-operating interests.

Kyle Koontz, CEO of bpx energy, commented: “We’re excited to welcome Sixth Street as a partner in our Permian and Eagle Ford midstream operations. From the beginning, we’ve understood that midstream investment is key to creating value, ensuring flow assurance, and reducing emissions in these basins. This agreement confirms that we’re delivering on our strategy to maximize returns while continuing to operate safely and efficiently.”

At its Capital Markets Update in February 2025, bp reaffirmed its goal to achieve $20 billion in divestments by the end of 2027.