BP is considering an initial public offering of its US Midwest and Gulf Coast pipelines, the company said.
The oil major said the spinoff would be a wholly-owned subsidiary called BP Midstream Partners which would comprise crude oil, natural gas and refined product pipelines.
The firm said yesterday that it would register the master limited partnership (MLP) by the end of this year, if it decides to go ahead with the plan.
An industry source told Reuters that BP started discussing an IPO for its US pipeline assets several years ago, but put the proposals on hold when oil prices plummeted.
The IPO would follow the example set by other oil companies which have spun off pipeline assets to raise funds.
Shell generated nearly $1billion in 2014 through the creation of Shell Midstream Partners.
BP Pipelines (North America) owns and operates pipelines and terminal facilities in the lower 48 states and the Gulf of Mexico.
It transports more than 1.3million barrels per day of oil, refined products and natural gas through nearly 3,500 miles of pipelines.
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