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BP is selling Apollo a non-controlling stake in a company that owns 12% interest in TANAP, the deal is valued at $1 billion, Report informs referring to BP.
"bp and Apollo today announced that they have reached agreements for Apollo-managed funds to purchase a 25% non-controlling stake in BP Pipelines (TANAP) Ltd – bp TANAP – the bp subsidiary that holds bp’s 12% interest in TANAP, owner and operator of the pipeline that carries natural gas from Azerbaijan across Türkiye.
Under the agreement, Apollo funds will purchase the non-controlling shareholding in bp TANAP for a consideration of approximately $1.0 billion. Proceeds arising from this transaction will contribute towards bp’s program for $20 billion in divestment and other proceeds.
While the deal enables bp to monetize its interest in TANAP, bp will remain the controlling shareholder of bp TANAP and retain a long-term commercial and strategic interest, including governance rights, in the pipeline - a vital part of the gas value chain for the bp-operated Shah Deniz gas field in Azerbaijan.
The transaction is anticipated to close in 2Q 2025, subject to regulatory and TANAP shareholders' approvals," reads the statement.
TANAP, running for approximately 1,800km across Türkiye, is the central section of the SGC pipeline system. The SGC transports gas from the bp-operated Shah Deniz gas field in the Azerbaijan sector of the Caspian Sea to markets in Europe, including Italy and Greece. In November 2024 Apollo and bp completed their previous agreement for Apollo to partner with bp on TAP - the final leg of the SGC.
bp and Apollo continue to explore opportunities for further cooperation, including in infrastructure, gas and low carbon energy assets.
Apollo is a high-growth, global alternative asset manager. In our asset management business, we seek to provide our clients excess return at every point along the risk-reward spectrum from investment grade credit to private equity.
