BP to sell stakes in US onshore pipeline assets for $1.5b

BP has agreed to sell minority stakes in some of its US onshore pipeline assets in the Permian and Eagle Ford basins to investment firm Sixth Street for $1.5 billion, it said on Monday, reports Reuters.

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 per cent, 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.