Signage is displayed on an oil storage tank at the BP-Husky Toledo Refinery in Oregon, Ohio (USA)
Luke Sharrett | Bloomberg | Getty Images
BP is seeking buyers for a stake in the U.S. natural gas pipeline network, four people familiar with the matter said.
The British energy company could get $3 billion from the sale, two of the people said, one of whom added that BP could sell up to 49 percent of the business.
The sale process is part of BP chief executive Murray Auchincloss’ efforts to reduce the company’s debt levels, which have risen over the past year, two other people said.
BP does not want to comment. The four people spoke on condition of anonymity because they were not authorized to speak publicly.
Its share price languished as BP faced pressure from investors to improve performance and profitability amid concerns about the company’s energy transition strategy.
It plans to sell stakes in its Lightsource BP solar business, as well as its US onshore wind division and offshore wind operations. Auchincloss, which is looking to increase cash flow and reduce debt, will update the company’s strategy in February.
Net debt rose to $24.3 billion at the end of September from $22.3 billion a year earlier due to lower-than-expected asset disposals, BP said in its third-quarter results.
The company’s stock has lost more than 18% of its value this year, worse than any of its rivals. Shell shares are down 3% year to date Exxon Mobil It has increased by 14% Chevron it is almost 7% higher.
The U.S. oil and gas pipeline sector has seen increasing consolidation in recent years as production grows and problems with permitting new pipelines make existing assets more valuable.
BP has about 1,500 miles (2,414 km) of pipelines across the United States that transport 1.1 million barrels of crude oil, natural gas and fuel each day, according to its website.
