bp and Apollo reached an agreement to sell a 25% non-controlling stake in bp Pipelines—subsidiary that holds bp's 12% interest in TANAP—to funds managed by Apollo, company announced on Friday.
Under the agreement—valued at approximately $1 billion—bp will retain its controlling stake in the company and maintain governance rights over the pipeline, which is a crucial link in the gas supply chain for the bp-operated Shah Deniz gas field in Azerbaijan.
TANAP allows natural gas transportation from Azerbaijan to Europe via Türkiye and forms the central part of the Southern Gas Corridor (SGC).
'The proceeds from the transaction will contribute to bp's broader $20 billion divestment program and other proceeds,' bp said.
The transaction is expected to be completed in the second quarter of this year, subject to regulatory and TANAP shareholders approvals, it added.
bp and Apollo previously collaborated on the Trans Adriatic Pipeline, the final leg of the SGC, finalizing that agreement in November 2024.
The latest agreement 'unlocks capital from our global portfolio while retaining our role in this strategic asset for bringing Azerbaijan gas to Europe,' William Lin, bp's executive vice president for gas and low-carbon energy, said.
'This investment underscores the relevance of Apollo's capital for high quality scaled infrastructure opportunities in Europe,' said Leslie Mapondera, Apollo partner.
By Humeyra Ayaz
Anadolu Agency
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