BP Sells Texan Mid-Stream Assets

BP announced Monday that it is selling its mid-stream assets in Texas for $227.5 million to Eagle Rock Energy Partners.

The company is selling its Sunray and Hemphill gas processing plants, along with their associated gas gathering system. The Sunray plant in Moore County and the Hemphill plant, in Hemphill County, have a combined processing capacity of approximately 220 million cubic feet of gas per day.

The deal, which does not include any of BP's natural gas producing assets in the area, is expected to close by the end of this year.

Speaking to Rigzone, BP said that the deal is part of the oil and gas major's strategy to focus on growth assets.

"It's part of our focusing on assets that have growth potential and have scale. And this was an intermediate bit of business – pipelines and a bit of processing – that didn't fit those two categories," said a spokesman for the company.

"Since the [Deepwater Horizon] spill in 2010 we've looked at our overall strategy and the intention is to focus on things that we can grow and this will help us meet our disposal target of $38 billion by the end of next year."

 

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