bp has announced an agreement to sell a non-controlling stake in its subsidiary, bp Pipelines TAP Limited, to Apollo for approximately $1 billion. This subsidiary holds a 20% share in the Trans Adriatic Pipeline (TAP), a key infrastructure asset transporting natural gas from Azerbaijan to European markets. Despite the sale, bp will retain control over the subsidiary, ensuring its strategic role in Europe’s energy supply remains intact. The proceeds from the deal will contribute to bp’s 2024 divestment target of $2-3 billion, with the transaction expected to close in the fourth quarter, pending regulatory approval.
Apollo, a leading global alternative asset manager, highlighted the long-term potential of this investment, citing its focus on stable cash flow and collaboration with bp on further opportunities in gas and low-carbon energy assets. The transaction aligns with bp's capital efficiency strategy while fostering future cooperation between the two companies. As of June 2024, Apollo manages approximately $696 billion in assets, focusing on providing clients with tailored financial solutions across investment strategies. This deal exemplifies Apollo’s approach to leveraging its expertise in sustainability and infrastructure to support bp’s energy transition plans.
