BP selling minority stake in co that owns 20% of TAP to Apollo for $1 bln

BAKU. Sept 16 (Interfax) - BP and U.S. global alternative asset manager Apollo have signed an agreement for Apollo-managed funds to purchase a non-controlling stake in BP Pipelines TAP Limited, the BP subsidiary that holds a 20% share in Trans Adriatic Pipeline AG (TAP) in a transaction valued at approximately $1 billion, BP said in a press release.

BP will remain the controlling shareholder of BP Pipelines TAP Limited upon completion.

The transaction is expected to close in Q4 2024, subject to regulatory and partner approvals.

"We are pleased to partner with BP on an agreement that will provide our investors with long-term exposure to an industry-leading infrastructure asset with a stable cash flow profile, while allowing BP to meet its objectives of retaining control and executing on its capital efficiency strategy," said Apollo partner Skardon Baker.

BP and Apollo could also consider additional investment opportunities, including potential co-operation in both gas and low carbon energy assets, as well as infrastructure.

Trans Adriatic Pipeline AG is the owner and operator of a key infrastructure asset for meeting European energy demand, namely the final 880-kilometer leg of the Southern Gas Corridor pipeline system that transports natural gas from the BP-operated Shah Deniz gas field in the Azerbaijan sector of the Caspian Sea to markets in Europe.