The energy company announced the transaction on Monday as part of its broader $20 billion divestment programme, designed to reduce debt and streamline operations through to 2027. The sale forms part of BP’s ongoing review of its oil and gas portfolio, which includes measures to cut costs and sharpen focus on high-return assets.
According to UBS analyst Josh Stone, the deal represents a “small positive” for the company, with the expected reduction in BP’s leverage ratio by roughly 1% and a net income benefit estimated between $100 million and $200 million.
BP has faced growing scrutiny from shareholders in recent months, following weaker returns linked to its renewable energy investments and renewed pressure from activist investor Elliott Management, which has been pushing for stronger financial discipline.
Once the transaction is completed, BP’s U.S. onshore subsidiary, bpx energy, will retain a controlling 51% interest in the Permian assets and a 25% stake in the Eagle Ford holdings.
The sale precedes BP’s third-quarter earnings report, scheduled for release on November 4, where investors will be watching closely for updates on the group’s divestment progress and strategic direction.