Blackstone Group Inc. and Apollo Global Management Inc. are interested in bidding for a majority stake in Western Midstream Partners LP being sold by Occidental Petroleum Corp. (OXY), according Bloomberg, citing people familiar with the matter.
Other firms interested include Global Infrastructure Partners and KKR & Co.
Western Midstream, based in The Woodlands, Texas, has more than 15,200 miles of oil and gas pipelines and about six dozen processing and treatment facilities in the midwestern United States and Texas
A deal could be reached by the end of this year.
OXY is focusing on cutting costs and reducing debt after its $38 billion acquisition of Anadarko Petroleum in August.
The potential divestiture would help Occidental meet its goal of selling $10 billion to $15 billion in assets over the next two years to pay down debt.
OXY has plans to sell its stake in Plains All American Pipeline for $650 million. In May, French energy giant Total SA’s acquired Anadarko’s African assets an $8.8 billion transaction.
