By Sarah McFarlane, David French and Ron Bousso
LONDON/NEW YORK (Reuters) – BP (BP) is in search of consumers for a stake in its U.S. pure fuel pipeline community, 4 folks with information of the matter mentioned.
The British vitality firm might elevate as much as $3 billion from the sale, two of the folks mentioned, with considered one of them including that BP might promote as much as a 49% stake within the enterprise.
The sale course of is a part of BP CEO Murray Auchincloss’s drive to cut back the corporate’s debt ranges, which have risen over the previous yr, one other two folks mentioned.
BP declined to remark. All 4 folks had been talking on situation of anonymity as they weren’t authorised to talk publicly.
With its share value languishing, BP is dealing with investor strain to enhance efficiency and profitability amid issues over the corporate’s vitality transition technique.
It has plans to promote stakes in its Lightsource BP photo voltaic enterprise in addition to its U.S. onshore wind division and offshore wind operations. Auchincloss, who’s in search of to extend money stream and scale back debt, will replace the corporate’s technique in February.
Internet debt rose to $24.3 billion on the finish of September, from $22.3 billion a yr earlier, because of decrease than anticipated asset disposals, BP mentioned in its third quarter outcomes.
The corporate’s shares have misplaced greater than 18% of their worth to this point this yr, a worse efficiency than any of its rivals. Shell’s shares are down 3% year-to-date whereas ExxonMobil is up 14% and Chevron is almost 7% larger.
The U.S. oil and fuel pipeline sector has undergone rising consolidation lately as manufacturing grows and issues with allowing for brand spanking new pipelines make current belongings extra beneficial.
BP owns round 1,500 miles (2414 km) of pipelines that transport 1.1 million barrels of crude, pure fuel and fuels per day throughout america, in response to its web site.
(Reporting by Sarah McFarlane, David French and Ron Bousso. Modifying by Anousha Sakoui, Kirsten Donovan)
