BP and Apollo agree on $1bn deal for 25% stake in bp TANAP

BP and Apollo person finalised agreements for Apollo-managed funds to get a 25% non-controlling involvement successful BP Pipelines (TANAP), referred to arsenic bp TANAP.

bp TANAP is simply a bp subsidiary that holds a 12% involvement successful the TANAP pipeline, which is important for transporting earthy state from Azerbaijan crossed Türkiye.

Apollo funds volition acquisition the non-controlling shareholding successful bp TANAP for astir $1bn. The proceeds volition lend to bp’s $20bn divestment programme.

Despite monetising its interest, bp volition stay the controlling shareholder, retaining strategical involvement and governance rights successful the pipeline.

The transaction is expected to adjacent successful the 2nd 4th of 2025, pending regulatory and TANAP shareholders' approvals.

bp state & debased c vigor enforcement vice president William Lin said: “We are pleased to widen our concern with Apollo and to deepen our concern successful this cardinal portion of vigor infrastructure for Europe.

“This unlocks superior from our planetary portfolio portion retaining our relation successful this strategical plus for bringing Azerbaijan state to Europe. bp and Apollo volition proceed to research further strategical practice and mutually beneficial opportunities.”

TANAP, spanning astir 1,800km crossed Türkiye, is the cardinal conception of the Southern Gas Corridor (SGC) pipeline system.

The SGC transports state from the Shah Deniz state tract successful the Azerbaijan assemblage of the Caspian Sea to European markets including Italy and Greece.

In November 2024, Apollo and bp completed a erstwhile statement for Apollo to spouse with bp connected TAP, the last limb of the SGC.

BP and Apollo proceed to research further practice opportunities successful infrastructure, state and low-carbon vigor assets.

Apollo spouse Skardon Baker said: “We spot important imaginable with our scaled, semipermanent superior to spouse with bp, successful alignment with their strategical objectives. We are pleased by the highly palmy concern to date.”

Additionally, Saudi Aramco is reportedly considering acquiring bp’s Castrol lubricant business, perchance valuing the part astatine astir $10bn.

BP is evaluating options for its Castrol division, including a imaginable sale, arsenic portion of a broader strategical review.

"BP and Apollo hold connected $1bn woody for 25% involvement successful bp TANAP" was primitively created and published by Offshore Technology, a GlobalData owned brand.

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