British oil and gas company BP plc is selling non-operating shares in the assets of the Permian Basin and Eagle Ford Basin fields to private investor Sixth Street for $1.5 billion. This is reported in a BP press release.
The financing of the deal provides for two payment stages — $1 billion after signing the agreement, and the remaining amount — until the end of the year, subject to regulatory approval.
BPX Energy's assets include pipelines and BPX facilities in Permian Basin and Eagle Ford Basin, including four central processing complexes in Permian Basin — Grand Slam, Bingo, Checkmate, and Crossroads, which connect wells to third-party pipeline systems transporting oil and gas to consumers.
Upon completion of both transactions, bpx energy's share in Permian's assets will be reduced to 51% (from 100%), and bpx's share in Eagle Ford's assets will be reduced to 25% (from 75%). Sixth Street will own the remaining non-operating shares.
The deal is in line with bpx energy's strategy of increasing value, ensuring flow and reducing emissions, and maximizing return on investment, and will significantly contribute to BP's goal of selling assets worth $20 billion by the end of 2027.
The agreement allows BP to free up capital from the infrastructure, while retaining operator rights and control over strategic mid-level assets, as bpx will remain the operator of all assets.
Morgan Stanley & Co. LLC and Hunton Andrews Kurth LLP act as consultants to BP.
bpx energy is the American division of British BP plc for the development of fields in the Permian, Eagle Ford and Haynesville regions. The company uses next-level technologies to safely increase production while reducing emissions with the participation of other integrated BP units. The headquarters is located in Denver, Colorado.
BP is a British multinational oil and gas company with headquarters in London (England). About a third of the company's revenue comes from operations in the United States.
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