British oil major BP has agreed to acquire the remaining stake in its US pipelines partnership BP Midstream Partners (BPMP).

A US affiliate of BP will acquire all outstanding common units not already owned directly or indirectly in the master limited partnership BPMP.

BP made the offer in August 2021 to acquire the publicly traded units of BPMP, which was created by BP Pipelines to own, operate, develop and acquire pipelines and other midstream assets. BP Pipelines is an indirect wholly owned subsidiary of BP.

According to Reuters, the deal is estimated to have total price of about $723m.

BP has offered unitholders with 0.575 of a BP American depositary share in exchange for each Public Common Unit owned.

In a press statement, BP said: “In line with bp’s strategy introduced last year of becoming an integrated energy company, this transaction will deepen bp’s interests in, and simplifies the ownership and governance structure of, midstream assets that support integration and optimisation of its fuels value chain in the US.

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“This transaction provides the opportunity for BPMP unitholders to participate in this strategy.”

Planned for completion in the first quarter of 2022, the deal is subject to customary approvals.

Last month, BP and Aker have jointly divested a stake of around 5% in Norwegian oil and gas joint venture Aker BP.

The two companies sold a total of 18.01 million Aker BP shares at a price of Nkr310 ($35.68) per share.

Aker BP was created in 2016 following the merger of the Norwegian upstream operations of BP and Aker.

BP’s stake is reduced to 27.85% in Aker BP while Aker’s stake is reduced to 37.14%.