Sixth Street Said to Buy $700 Million Stake in BP Pipelines JV

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BP Pipelines, a transportation and delivery arm of BP Plc, has sold a 49% stake in a U.S. affiliate to investment firm Sixth Street, according to a person familiar with knowledge of the matter.

The sale of the stake in the affiliate, which includes pipelines tied to Whiting, the energy giant’s largest refinery, fetched about $700 million, the person said. It forms the basis of a joint venture for future midstream investments, the person said, asking not to be identified discussing confidential information.

Representatives for BP and Sixth Street declined to comment.

Last week, BP said it had reached a $35 billion net debt reduction target thanks in part to receiving proceeds from asset disposals earlier than expected. These included $700 million from the sale of a 49% stake in a controlled affiliate that held certain U.S. onshore “refined product and crude logistics assets”.

The London-based major is seeking to sell $25 billion of assets by 2025.

Sixth Street manages more than $50 billion and its mandate includes acquiring, developing, financing and operating infrastructure assets. Past transactions include forming Blackline Midstream, which touts itself as the largest propane infrastructure company in New England, and buying a portfolio of Spanish hydro assets and a ferroalloys business from Ferroglobe in 2019.

Away from infrastructure, Sixth Street this year invested in Legends, a hospitality management company, and agreed to acquire Talcott Resolution Life Insurance Company.

©2021 Bloomberg L.P.

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