Apollo partners with bp in Trans Adriatic Pipeline

BP and Apollo announced that Apollo-managed funds (the “Apollo Funds”) have reached an agreement to acquire a non-controlling stake in BP Pipelines TAP Limited, the BP subsidiary that holds a 20% interest in Trans Adriatic Pipeline AG (TAP). The transaction is valued at approximately $1 billion. Following the completion of this deal, BP will continue to be the controlling shareholder of BP Pipelines TAP Limited.

“We are very pleased to come together with Apollo on this key piece of Europe’s energy infrastructure. Importantly, while bringing in a new investor, this does not diminish bp’s role in a strategic asset for our Azerbaijan gas business. We see great potential in building innovative arrangements such as this and look forward to continuing to explore further opportunities with Apollo through growing this collaborative relationship.”

- William Lin, bp EVP gas and low carbon energy

Trans Adriatic Pipeline AG owns and operates a vital infrastructure asset that fulfills European energy demand: the final 880-kilometer segment of the Southern Gas Corridor pipeline system. This pipeline transports natural gas from the BP-operated Shah Deniz gas field in Azerbaijan's sector of the Caspian Sea to European markets, including Greece and Italy.

BP and Apollo are also looking to collaborate on additional investment opportunities, which may include partnerships in gas, low-carbon energy assets, and infrastructure projects.

William Lin, BP's Executive Vice President of Gas and Low Carbon Energy, expressed satisfaction in partnering with Apollo on this essential piece of Europe’s energy infrastructure. He noted that while a new investor is being introduced, BP's role in this strategic asset related to its Azerbaijan gas operations remains intact. Lin emphasized the potential for innovative arrangements and looks forward to further collaboration with Apollo.

Skardon Baker, an Apollo Partner, remarked on the partnership with BP, highlighting that the agreement offers investors long-term exposure to a leading infrastructure asset with stable cash flows, while allowing BP to maintain control and execute its capital efficiency strategy.

Leslie Mapondera, another Apollo Partner, described the transaction structure as innovative and reflective of the tailored solutions Apollo can provide. He expressed confidence in their ability to pursue additional strategic transactions with BP, leveraging Apollo’s long-term capital and expertise in sustainability and infrastructure investments to support BP’s strategic plans, including energy transition initiatives.

The proceeds from this transaction will contribute to BP’s target of $2-3 billion in divestments and other proceeds for 2024, as part of the company's disciplined financial framework. The transaction is anticipated to close in the fourth quarter of 2024, pending customary regulatory and partner approvals.