BP and Apollo have finalised agreements for Apollo-managed funds to acquire a 25% non-controlling stake in BP Pipelines (TANAP), referred to as bp TANAP.
bp TANAP is a bp subsidiary that holds a 12% interest in the TANAP pipeline, which is crucial for transporting natural gas from Azerbaijan across Türkiye.
Apollo funds will purchase the non-controlling shareholding in bp TANAP for approximately $1bn. The proceeds will contribute to bp’s $20bn divestment programme.
Despite monetising its interest, bp will remain the controlling shareholder, retaining strategic interest and governance rights in the pipeline.
The transaction is expected to close in the second quarter of 2025, pending regulatory and TANAP shareholders’ approvals.
bp gas & low carbon energy executive vice president William Lin said: “We are pleased to extend our partnership with Apollo and to deepen our partnership in this key piece of energy infrastructure for Europe.
“This unlocks capital from our global portfolio while retaining our role in this strategic asset for bringing Azerbaijan gas to Europe. bp and Apollo will continue to explore further strategic cooperation and mutually beneficial opportunities.”
TANAP, spanning approximately 1,800km across Türkiye, is the central section of the Southern Gas Corridor (SGC) pipeline system.
The SGC transports gas from the Shah Deniz gas field in the Azerbaijan sector of the Caspian Sea to European markets including Italy and Greece.
In November 2024, Apollo and bp completed a previous agreement for Apollo to partner with bp on TAP, the final leg of the SGC.
BP and Apollo continue to explore further cooperation opportunities in infrastructure, gas and low-carbon energy assets.
Apollo partner Skardon Baker said: “We see significant potential with our scaled, long-term capital to partner with bp, in alignment with their strategic objectives. We are pleased by the highly successful partnership to date.”
Additionally, Saudi Aramco is reportedly considering acquiring bp’s Castrol lubricant business, potentially valuing the division at around $10bn.
BP is evaluating options for its Castrol division, including a potential sale, as part of a broader strategic review.
