BP Progresses IPO for US Pipes

BP in the Americas said September 11 that its wholly owned subsidiary, BP Midstream Partners, filed a registration statement on Form S-1 with the US Securities and Exchange Commission (SEC) related to its proposed initial public offering (IPO) of common units representing limited partner interests.

The oil major said in July it had begun evaluating the formation and IPO of a master limited partnership (MLP) to enhance shareholder value and support BP's strategy to grow its midstream.

BP Midstream Partners expects the offering to occur in the next quarter, dependent on market conditions, and anticipates the common units will trade on the New York Stock Exchange under the ticker "BPMP." It will be headquartered in Houston, Texas, with offices in Chicago. 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.

Citigroup, Goldman Sachs and Morgan Stanley are acting as book-running managers. Citigroup is acting as structuring agent for the proposed offering.

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 Whiting, Indiana, together with interests in four offshore crude oil pipeline systems and one offshore natural gas pipeline system that connect offshore production areas in the US Gulf with the Gulf Coast refining and distribution hubs.

Mark Smedley