Reports are petroleum giant BP (NYSE:BP) is seeking buyers for a stake in its U.S. natural gas pipeline network.
The British energy company could raise up to $3 billion from the sale, two of the people said, with one of them adding that BP may sell up to a 49% stake in the business.
The sale process is part of BP CEO Murray Auchincloss’s drive to reduce the company’s debt levels, which have risen over the past year, another two people said.
BP declined to comment. All four people were speaking on condition of anonymity as they were not authorized to speak publicly.
With its share price languishing, BP is facing investor pressure to improve performance and profitability amid concerns over the company’s energy transition strategy.
It has plans to sell stakes in its Lightsource BP solar business as well as its U.S. onshore wind division and offshore wind operations. Auchincloss, who is seeking to increase cash flow and reduce debt, will update the company’s strategy in February.
Net debt rose to $24.3 billion at the end of September, from $22.3 billion a year earlier, due to lower-than-anticipated asset disposals, BP said in its third-quarter results.
BP shares began trading Friday down 40 cents to $378.80.
