Oil & Gas

BP is seeking buyers for a stake in its U.S. natural gas pipeline network, according to sources familiar with the matter. The British energy company could raise up to $3 billion from the sale, potentially selling as much as 49% of the business. This move is part of BP CEO Murray Auchincloss's efforts to reduce the company's growing debt levels, which have increased over the past year. However, BP has declined to comment on the matter, and all four sources, who spoke on the condition of anonymity, were not authorized to speak publicly.

The sale comes at a time when BP is under investor pressure to improve its performance and profitability, particularly as concerns about its energy transition strategy continue to mount. Along with the pipeline sale, BP plans to divest stakes in its Lightsource BP solar business, U.S. onshore wind division, and offshore wind operations. Auchincloss, who aims to boost cash flow and reduce debt, is expected to update BP’s overall strategy in February.

BP's net debt has risen to $24.3 billion as of September, up from $22.3 billion a year earlier. The increase is attributed to lower-than-expected asset disposals, as revealed in the company's third-quarter results. In addition to the growing debt, BP's share price has struggled, losing more than 18% of its value this year, a performance that is worse than that of its rivals. By comparison, Shell's shares have dropped by 3%, while ExxonMobil’s and Chevron’s shares have seen increases of 14% and nearly 7%, respectively.

The U.S. oil and gas pipeline sector has seen increased consolidation in recent years, driven by growing production and challenges in obtaining permits for new pipelines, making existing assets more valuable. BP owns approximately 1,500 miles (2,414 km) of pipelines that transport 1.1 million barrels of crude, natural gas, and fuels daily across the United States, as stated on the company’s website.