bp has reached an agreement for Sixth Street-managed funds to purchase non-controlling interests in Permian and Eagle Ford midstream assets of bpx energy – bp’s US onshore oil and gas business. bpx will remain operator of all the assets. The transaction has a total consideration of $1.5 billion and is structured in two phases: approximately $1 billion paid upon signing with the balance expected by the end of the year, subject to regulatory approvals.
The bpx midstream assets encompass bpx’s pipelines and facilities in the Eagle Ford and Permian basins, including four Permian central processing facilities – Grand Slam, Bingo, Checkmate and Crossroads. These assets connect wells to 3rd party pipeline systems, transporting the oil and gas to customers. Following completion of both transactions, bpx’s ownership interest in the Permian midstream assets will move to 51% (from 100%), while bpx’s ownership interest in the Eagle Ford midstream assets will move to 25% (from 75%). Sixth Street will hold the remaining, non-operating interests.
Share this article
