bp has agreed to sell non-controlling interests in its U.S. onshore midstream assets in the Permian and Eagle Ford basins to Sixth Street-managed funds for $1.5 billion. The transaction enables bp to unlock capital while maintaining operatorship and control of its strategic infrastructure.
The agreement includes an initial payment of approximately $1 billion upon signing, with the remaining balance expected by the end of 2025, subject to regulatory approvals. The transaction contributes significantly toward bp’s 2025 divestment proceeds and its broader goal of achieving $20 billion in divestments by the end of 2027.
The bpx midstream assets, operated by bp’s U.S. onshore subsidiary bpx energy, comprise key pipelines and facilities in the Eagle Ford and Permian basins, including four major central processing facilities—Grand Slam, Bingo, Checkmate, and Crossroads. These assets connect wells to third-party pipeline systems, ensuring the efficient and reliable transportation of oil and gas to customers.
Following the completion of the two transaction phases, bpx’s ownership in the Permian midstream assets will reduce from 100% to 51%, while its stake in the Eagle Ford midstream assets will decrease from 75% to 25%. Sixth Street will hold the remaining non-operating interests.
The deal reflects bp’s ongoing focus on capital discipline, optimizing its portfolio, and enhancing returns from its U.S. energy operations. By retaining operatorship, bp ensures continuity in safety, efficiency, and environmental standards across its midstream infrastructure.
bpx energy, headquartered in Denver, operates across the Permian, Eagle Ford, and Haynesville basins. The company emphasizes the use of advanced technology to increase production, lower emissions, and integrate operations with bp’s global supply, trading, and shipping capabilities.
Morgan Stanley & Co. LLC acted as financial adviser to bp, and Hunton Andrews Kurth LLP served as lead legal adviser.
KEY QUOTE:
“We are pleased to welcome Sixth Street as a co-owner in our Permian and Eagle Ford midstream assets. 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.”
Kyle Koontz, CEO of bpx energy
