The potential divestment would help BP meet its targets to reduce debt and maintain its dividend. While it boosted its shareholder pay-out by 10% in second-quarter earnings in August, BP's net debt stood at US$23.7 billion.
BP has placed its stakes in US Gulf of Mexico pipelines in a new company in which it will hold a 51% position and sell the rest, sources have said.
The pipelines entity generates 12 month earnings before interest, tax, depreciation and amortisation of around US$200 million.
Reuters’ sources have requested anonymity due to the confidentially of the matter and have cautioned that the deal is not certain. Additionally, BP declined to comment.
One of the largest producers of oil and natural gas in the US Gulf of Mexico, BP is expected to produce around 400 000 boe/d from the region by the middle of this decade, per its website. It has five offshore platforms, with the fifth – Argos – commencing operations in April.
The 161 mile Mars Oil Pipeline, the 89 mile Endymion Oil Pipeline and the 115 mile Cleopatra Gas Pipeline, are among some the pipelines in which BP holds stakes.
The news comes in the midst of a leadership search at BP, after former Chief Executive Bernard Looney resigned last month due to undisclosed personal relationships with employees.
This would also not be the first time that BP has sold a stake in US assets.
In 2021, it set up a venture for infrastructure transporting refined products in which investment firm Sixth Street Partners acquired a 49% stake for around US$700 million.