BP divests non-controlling interests in U.S. onshore midstream assets for $1.5B

BP (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 U.S. onshore oil and gas business. BPX will remain operator of all the assets. The transaction has a total consideration of $1.5B and is structured in two phases: approximately $1B paid upon signing with the balance expected by the end of the year, subject to regulatory approvals. Following completion of both transactions, BPX’s ownership interest in the Permian midstream assets will move to 51%, while BPX’s ownership interest in the Eagle Ford midstream assets will move to 25%. Sixth Street will hold the remaining, non-operating interests.