British oil and gas group BP Plc (LON:BP) said its BP America Production Company unit is selling its midstream gas operations in Texas, comprising the Sunray and Hemphill gas processing plants and their gathering systems for USD227.5m (EUR185.1m) in cash.
The agreement was signed with US sector firm Eagle Rock Energy Partners LP (NASDAQ:EROC), BP said, adding that the operations to be sold will be better off in the hands of a specialist in midstream oil and gas.
The two plants serve BP’s natural gas production in the Texas Panhandle region. BP’s natural gas producing assets in the area are not part of this deal, the vendor explained.
The transaction is expected to wrap up in the fourth quarter of this year, pending receipt of regulatory clearances among other closing conditions.
BP’s gas operations in North America comprise assets in seven top gas basins in the US’s lower 48 states. The group continues to explore opportunities to grow its US onshore business over the long-term, as it considers it an integral part of its operations, it said.
According to the British group, its North America Gas (NAG) unit is the seventh largest natural gas producer in the US. BP invested over USD52bn in its US business between 2007 and 2011, more than it had spent in any other market, it said. BP employs 23,000 in the country.