BP to sell US onshore midstream assets for $1.5bn

BP announced this week that it had agreed to sell non-controlling interests in Permian and Eagle Ford midstream assets owned by its BPX Energy unit to funds managed by Sixth Street for around $1.5bn. BPX is BP’s US onshore oil and gas business and will remain operator of the assets included in the deal.

The midstream assets comprise BPX’s pipelines and facilities in the Eagle Ford and Permian regions, including four Permian central processing facilities – Grand Slam, Bingo, Checkmate and Crossroads. BP said in a November 3 announcement that the assets connect wells to third-party pipeline systems for transporting oil and gas to customers.

The transaction has been structured in two phases, with roughly $1bn due to be paid upon signing of the deal and the balance expected by the end of the year, depending on the receipt of required regulatory approvals. Following completion of both phases of the transaction, BPX’s ownership interest in the Permian midstream assets will be reduced to 51% from 100%, while its interest in the Eagle Ford midstream assets will be cut to 25% from 75%. Sixth Street will own the remaining non-operating interests in the assets.

“We are pleased to welcome Sixth Street as a co-owner in our Permian and Eagle Ford midstream assets,” stated BPX’s CEO, Kyle Koontz. “We recognised 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 maximise the return on our investment in these basins and allows us to continue operating them safely and efficiently.”

The announcement noted that BP had previously said in its capital markets update in February 2025 that it was targeting $20bn in asset sales by the end of 2027. With this transaction, it takes a step towards that goal. The deal is expected to increase non-controlling interest on BP’s balance sheet, with the effect on non-controlling interest projected to be in the range of $100-200mn per year.

This week, Reuters cited a UBS analyst, Josh Stone, as describing the deal as a "small positive" that is expected to bring BP's leverage ratio down about 1%.

Aside from the Eagle Ford and Permian, BPX also has operations in the Haynesville shale region.