BP and Apollo have reached agreements for Apollo-managed funds to purchase a 25% non-controlling stake in BP Pipelines (TANAP), 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 (€9.2 million).
While the deal enables BP to monetise 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.
William Lin, BP executive vice president, gas and low carbon energy says: ‘We are pleased to extend our partnership with Apollo and to deepen our partnership in this key piece of energy infrastructure for Europe.’
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.
Skardon Baker, Apollo partner, adds: ‘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.’
