BP Midstream Partners, a wholly owned, indirect subsidiary of BP PLC, has filed a registration statement on Form S-1 with the US Securities and Exchange Commission related to its proposed initial public offering of common units representing limited partner interests.
BP Midstream Partners expects the offering to occur in the fourth quarter, dependent on market conditions.
The announcement comes after BP said in July it had begun evaluating the formation and IPO of a master limited partnership to grow its midstream business (OGJ Online, July 20, 2017). BP Midstream Partners will own, operate, develop, and acquire pipelines and other midstream assets. It will be headquartered in Houston and have offices in Chicago.
BP Midstream Partners’ initial assets are expected to consist of ownership interests in one onshore crude oil pipeline system, one onshore refined products pipeline system, and one onshore diluent pipeline system, which carry shipments to or from BP’s Whiting Refinery in Indiana.
It also will have interests in four offshore crude pipeline systems and one offshore natural gas pipeline system that connect offshore production areas in the Gulf of Mexico with the Gulf Coast refining and distribution hubs.
If the IPO is completed, BP would own the general partner of BP Midstream Partners, all of its incentive distribution rights, and a majority of its limited partner interests.
