Apollo partners with bp in Trans Adriatic Pipeline
- Apollo Funds to become a non-controlling shareholder in bp Pipelines TAP Ltd., an entity which holds a 20% stake in Trans Adriatic Pipeline AG
- Provides Apollo exposure to a world-class energy asset; allows bp to unlock near-term value and capital for efficient reallocation
- Separately, bp and Apollo are exploring greater strategic cooperation, including energy transition opportunities
bp and Apollo has announced an agreement for Apollo-managed funds to purchase a non-controlling stake in bp Pipelines TAP Ltd., the bp subsidiary that holds a 20% share in Trans Adriatic Pipeline AG (TAP) in a transaction valued at approximately $1 B. Upon completion, bp will remain the controlling shareholder of bp Pipelines TAP Ltd.
William Lin, bp EVP gas and low carbon energy, said, “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.”
Trans Adriatic Pipeline AG is the owner and operator of a key infrastructure asset for meeting European energy demand: the final 880-km 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 such as Greece and Italy.
bp and Apollo will also look to partner on additional investment opportunities, including potential co-operation in both gas and low carbon energy assets, and infrastructure.
Skardon Baker, Apollo Partner, said, “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.”
Leslie Mapondera, Apollo Partner, said, “This innovative transaction structure is indicative of the types of bespoke solutions we can provide at Apollo, and we believe we are ideally positioned to execute on additional strategic transactions with bp. Together, we see more potential opportunities, as we look to leverage Apollo’s long-term capital and sustainability and infrastructure investment expertise to partner with bp on its strategic plans, including energy transition opportunities.”
The proceeds from the transaction will contribute to bp’s 2024 divestment and other proceeds target of $2 B–$3 B, part of the company’s disciplined financial frame. The transaction is expected to close in 4Q 2024, subject to customary regulatory and partner approvals required.
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