Published by Global Banking & Finance Review®
Posted on November 3, 2025
1 min readLast updated: January 21, 2026
Add as preferred source on GoogleBP sells US pipeline stakes for $1.5 billion to Sixth Street, aiming to reduce debt as part of a $20 billion divestment plan.
(Reuters) -BP has agreed to sell minority stakes in some of its U.S. onshore pipeline assets in the Permian and Eagle Ford basins to investment firm Sixth Street for $1.5 billion, it said on Monday.
The sale is part of a $20 billion divestment programme aimed at bringing debt levels down that the group is running to end-2027, and comes as BP reviews its oil and gas portfolio and cuts costs.
UBS analyst Josh Stone called the announcement a "small positive" which is expected to bring BP's leverage ratio down about 1%, with a net income impact of around $100 million to $200 million.
BP has been under pressure from investors and became the target of activist investor Elliott after an ill-fated foray into renewables hit profitability.
Once the sale is completed, BP's U.S. onshore oil and gas business, bpx energy, will hold a 51% stake in the Permian assets and 25% in the Eagle Ford assets.
BP is scheduled to report third-quarter results on November 4.
(Reporting by Shashwat Awasthi in Bengaluru; additional reporting by Shadia Nasralla; Editing by Subhranshu Sahu and Jan Harvey)
A divestment is the process of selling off a subsidiary, business unit, or asset. Companies often divest to reduce debt, focus on core operations, or improve financial performance.
The leverage ratio is a financial metric that measures the proportion of a company's debt to its equity. It indicates the level of financial risk and the company's ability to meet its debt obligations.
Minority stakes refer to ownership interests in a company that do not provide control over the company's operations. Investors typically hold less than 50% of the company's shares.
Net income is the total profit of a company after all expenses, taxes, and costs have been deducted from total revenue. It is a key indicator of a company's profitability.
A portfolio review is an assessment of an investment portfolio's performance, risk, and asset allocation. It helps investors make informed decisions about buying, selling, or holding assets.
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