BP has announced a strategic agreement with Apollo Global Management to sell a non-controlling stake in bp Pipelines TAP Limited, which holds a 20% interest in the Trans Adriatic Pipeline AG (TAP). The deal, valued at approximately $1 billion, is expected to close in the fourth quarter of 2024, pending regulatory and partner approvals.
Under the terms of the agreement, Apollo-managed funds will acquire the stake while BP retains control of bp Pipelines TAP Limited. TAP is a key infrastructure project in Europe, delivering natural gas from Azerbaijan’s Shah Deniz field, operated by BP, to key markets in Europe, including Greece and Italy.
BP Executive Vice President of Gas and Low Carbon Energy, William Lin, highlighted the collaborative potential of this deal. “This partnership strengthens our control of a strategic energy asset for our Azerbaijan gas business, while opening doors for further joint opportunities with Apollo in both gas and low carbon energy,” he stated.
Skardon Baker, a partner at Apollo, emphasized the appeal of the investment for Apollo’s clients, noting the long-term stability and cash flow the asset provides. He also pointed out BP’s continued capital efficiency strategy, allowing the company to meet its financial goals while maintaining a leading role in Europe’s energy infrastructure.
This deal will also contribute to BP’s divestment target of $2-3 billion for 2024, part of the company’s broader financial strategy. Both companies are exploring additional opportunities in the energy transition space, looking to combine Apollo’s capital expertise with BP’s strategic vision in sustainable energy.
The Trans Adriatic Pipeline is the final leg of the Southern Gas Corridor, a critical component in Europe’s energy security and diversification efforts, bringing natural gas from the Caspian Sea to European markets.
