British oil and gas major BP p.l.c ( BP ). on Monday announced the sale of its non-controlling stakes in midstream assets to a private investor for $1.5 billion.

Details

The deal is structured in two installments: approximately $1 billion at signing and the remainder expected by year-end, subject to regulatory approval.

The non-controlling interests in BPX Energy's Permian and Eagle Ford midstream assets will be transferred to funds managed by Sixth Street, while BPX will continue to operate all the assets.

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The assets include BPX's pipelines and facilities in both basins, along with four Permian central processing plants, Grand Slam, Bingo, Checkmate, and Crossroads, that transport oil and gas from wells to third-party pipeline networks for customer delivery.

The deal allows BP to release capital tied to its infrastructure while maintaining operatorship and control over these key midstream assets.

After both transactions close, BPX's stake in the Permian midstream assets will decrease from 100% to 51%, and its stake in the Eagle Ford midstream assets will drop from 75% to 25%.

Meanwhile, Sixth Street is holding the remaining non-operating interests.

The transaction also represents a significant step toward BP's goal of achieving $20 billion in divestments by the end of 2027 and contributes meaningfully to its 2025 divestment targets.

Management Commentary

Kyle Koontz, CEO of bpx energy, said, "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."

Recent Key Update

The company posted a trading update ahead of its third-quarter 2025 results scheduled for November 4, 2025.

The company projects quarterly results to include post-tax adjusting items for asset impairments of $200 million to $500 million across segments.

Price Action: BP shares were trading lower by 0.34% to $35.01 premarket at last check Monday.

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