BP Unlocks $1.5 Billion by Selling Stakes in US Midstream Assets

bp has agreed to sell non-controlling stakes in its Permian and Eagle Ford midstream assets to private investment firm Sixth Street for $1.5 billion, advancing its capital optimization strategy while maintaining operational control.

The deal covers bp’s bpx energy midstream infrastructure, including pipelines and four major Permian processing facilities, with Sixth Street acquiring 49% of the Permian assets and 75% of the Eagle Ford midstream system. bp will remain the operator across all assets. The transaction is split into two tranches: approximately $1 billion upfront and the remaining $500 million by year-end, pending regulatory approval.

The transaction marks a significant step in bp’s plan to streamline its portfolio and unlock value from non-core assets, part of its broader target to achieve $20 billion in divestments by 2027. The sale allows bp to recycle capital while retaining control over key infrastructure crucial to its US onshore production network.

Bpx Energy, bp’s US onshore arm based in Denver, operates across the Permian, Eagle Ford, and Haynesville basins, focusing on low-emissions operations and leveraging bp’s integrated trading and logistics capabilities. The company’s CEO, Kyle Koontz, said the partnership with Sixth Street reinforces bp’s strategy to maximize returns and maintain safe, efficient operations.

The move follows a broader trend among major oil producers monetizing midstream assets to fund growth in low-carbon and high-return projects, while private investors increasingly seek exposure to steady energy infrastructure returns.

By Charles Kennedy for Oilprice.com

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