BP Sells Texas Midstream Gas Assets, USA
BP America Production Company said that it has agreed to sell its Sunray and Hemphill gas processing plants in Texas, together with their associated gas gathering system, to Eagle Rock Energy Partners for $227.5 million in cash.
The Sunray plant, in Moore County, and the Hemphill plant, in Hemphill County, have combined processing capacity of approximately 220 million cubic feet of gas a day (mmcf/d) and an associated gathering system of around 2,500 miles of pipelines.
BP said it believes these assets, which serve BP’s natural gas production in the Texas Panhandle region, will be more strategically valuable to a company that specializes in midstream oil and gas operations. The agreement does not include BP’s natural gas producing assets in the area.
The transaction is expected to close in the fourth quarter of 2012, subject to regulatory approvals and customary closing conditions.
BP’s North America Gas business has a high quality portfolio of assets with a presence in seven of the leading gas basins in the US Lower 48 states. In 2011, BP produced over 1,800 mmcf/d natural gas in the US. BP’s US onshore upstream operations are an integral part of its business, and the company continues to look at opportunities for growth over the long-term.