BP PLC is reportedly evaluating the initial public offering of a master limited partnership for its US midstream assets.
The assets being considered reportedly include crude, natural gas, and product pipelines in the US Midwest and Gulf Coast. The company is said to likely begin the regulatory process in this year’s second half.
BP transports products through nearly 3,500 miles of pipeline in the US Lower 48.
BP has reportedly explored US midstream monetization in the past, but analysts have said that the IPO of an MLP is a better alternative as it allows the company to maintain control of its marketing and logistics operations through a majority-owned spin out.
