bp and Apollo have gone on to announce that they have reached agreements when it comes to Apollo-managed funds so as to buy a 25% non-controlling stake in bp Pipelines – TANAP Ltd. – bp TANAP, the subsidiary of bp that holds its 12% interest in TANAP, the owner and operator of the pipeline that happens to carry natural gas from Azerbaijan to all across Turkey.
Under the said agreement, Apollo Funds is going to buy the non-controlling shareholding when it comes to bp-TANAP for almost $1 billion. Proceeds from this transaction will go on to contribute towards bp’s program related to $20 billion in terms of divestment as well as other proceeds.
Although the deal helps bp to monetize its interest as far as TANAP gas pipeline is concerned, bp shall continue to be the controlling stakeholder of bp TANAP and also retain a long-term strategic as well as commercial interest, which includes governance rights, in the pipeline, which is a prominent part of the gas value chain for the Shah Deniz gas field located in Azerbaijan and operated by bp.
This transaction is expected to close in the second quarter of 2025 but is subject to regulatory along with TANAP gas pipeline shareholders nods.
TANAP, which runs for almost 1800 km throughout Turkey, happens to be the central section of the pipeline system. The SGC goes on to transport gas from the bp-operated, Azerbaijan-operated Shah Deniz gas field, which happens to be in the Caspian Sea sector, to markets across Europe, which include Greece as well as Italy.
It is well to be noted that in November 2024, Apollo and bp went on to finish their previous agreements for Apollo so as to partner with bp on TAP, which is SGC’s final leg. The fact remains that bp and Apollo continue to look into new and wider opportunities so as to further cooperate, such as in the fields of gas, infrastructure, and also energy assets.
BP executive vice president for gas & low carbon energy, William Lin, said that they are indeed pleased to extend their partnership with Apollo and also deepen this collaboration in this key fragment of energy infrastructure, especially for Europe.
All this goes on to unlock capital from their global portfolio while at the same time retaining their role when it comes to this strategic asset so as to bring the Azerbaijan gas back into Europe. Interestingly, bp and Apollo are going to continue to explore more strategic cooperation as well as opportunities that are mutually beneficial.
Apollo Partner, Skardon Baker, said that they indeed see prominent potential with their long-term capital to collaborate with bp, in sync with their strategic objectives, of course. He went on to add that they are very much pleased with the successful collaboration that has taken place to date.
Apollo Partner Leslie Mapondera remarked that they value the opportunity for their funds in order to further partner with bp on this crucial European infrastructure asset. This investment happens to highlight the relevance when it comes to the capital of Apollo for high-quality scaled infrastructure opportunities across Europe.
