
Energy giant BP has announced that Apollo Funds has agreed to purchase an interest in BP Pipelines TAP Limited.
This subsidiary of BP holds a 20% share in the trans-Adriatic pipeline (TAP) project. The deal is valued at around a billion US dollars, and for that, Apollo will receive a non-controlling stake in the subsidiary. BP, the maker of the Castrol grease and lubricant range, will continue to be the controlling stakeholder.
The 550-mile-long TAP will be a key piece of infrastructure for meeting the demand for gas in Europe as the last segment of the Southern Gas Corridor. It will be a pipeline system for supplying European markets with natural gas produced in the Azerbaijan sector of the Caspian Sea, where BP operates the Shah Deniz gas field.
The executive vice president for low-carbon energy and gas at BP, William Lin, said the company was happy to be partnering with Apollo on this project, adding:
“Importantly, while bringing in a new investor, this does not diminish BP’s role in a strategic asset for our Azerbaijan gas business. We see great potential in building innovative arrangements such as this, and look forward to continuing to explore further opportunities with Apollo through growing this collaborative relationship.”
The deal is expected to close towards the end of the year, with the proceeds helping to meet the company’s target of divesting $2–3 billion in assets over 2024, as part of its disciplined financial framework. The two companies will also explore other investment opportunities.