Apollo to pay BP $1B to buy stake in TAP gas link unit

bp (BP) and Apollo (APO) announced 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 in a transaction valued at approximately $1B. Upon completion, bp will remain 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,” said William Lin, bp EVP gas and low carbon energy. 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. The proceeds from the transaction will contribute to bp’s 2024 divestment and other proceeds target of $2B-$3B, 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.