BP To Sell Stake In Its US Oil And Gas Pipeline Network & Raise About $1B: Report

BP PLC BP is reportedly looking to sell a 49% stake in its U.S. oil and gas pipeline network in the Gulf of Mexico.

The British oil and gas company expects to raise as much as $1 billion from the divestiture and plans to meet its targets to lower debt and maintain its dividend, reported Reuters.

BP will place its interest in U.S. Gulf of Mexico pipelines in a new company where it will hold a 51% stake and sell the rest, as per the report.

The pipeline's entity reportedly generates a 12-month EBITDA of about $200 million.

Last month, BP's top executive, Dave Lawler, reportedly stepped down, marking another high-profile departure from the oil giant. This followed the resignation of the company's global chief executive, Bernard Looney. 

Related: Dismantling Petro-masculinity: Can BP Challenge Big Oil's Legacy Of Hiring Male CEOs?

As of Q2-end, net debt stood at $23.66 billion versus $22.82 billion a year ago.

Also Read: BP And Shell Dive Deep: New Exploration Deal With Trinidad And Tobago Following Complex Negotiations

Price Action: BP shares are trading lower by 0.66% at $37.35 premarket on the last check Wednesday.