(Telestock) – bpa British energy giant, and Apolloa US private equity firm, have signed an agreement under which funds managed by Apollo will purchase a non-controlling stake in bp Pipelines TAP Limitedthe bp subsidiary that holds a 20% stake in Trans Adriatic Pipeline AG (TAP) in a transaction valued at approximately 1 billion dollars. Upon closing, bp will remain the controlling shareholder of bp Pipelines TAP Limited.
TAP – whose shareholding is composed of bp (20%), SOCAR (20%), Snam (20%), Fluxys (20%) and Enagas (20%) – is the owner and operator of a key infrastructure asset to meet European energy demand: the last stretch of 880 kilometers of the Southern Gas Corridor pipeline system which transports natural gas from the BP-operated Shah Deniz gas field in the Azerbaijani sector of the Caspian Sea to markets in Europe such as Greece and Italy.
bp and Apollo will also seek to collaborate for further investment opportunitiesincluding potential cooperation in both gas and low-carbon energy assets and infrastructure, it said in a statement.
“We are very pleased to join Apollo on this key piece of European energy infrastructure,” commented William Lin, EVP gas and low carbon energy at bp. “It is important to underline that, while this brings a new investor, this does not diminish bp’s role in a strategic asset for our gas business in Azerbaijan. We see a great potential in creating innovative agreements like this one and we look forward to continuing to explore additional opportunities with Apollo as this collaborative relationship grows.”
The proceeds of the transaction will contribute to the divestment target and additional 2024 proceeds of bp of $2-3 billion, part of the company’s disciplined financial framework. The transaction is expected to close in the fourth quarter of 2024.