bp has agreed to a $1-billion deal with asset management company Apollo for a non-controlling interest in bp Pipelines TAP Ltd., the bp subsidiary that holds a 20% interest in Trans Adriatic Pipeline AG (TAP).
Upon completion, bp will remain the controlling shareholder of bp Pipelines TAP Ltd.
Trans Adriatic Pipeline AG is the owner and operator of 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.
The 877 km long Trans Adriatic Pipeline connects with the Trans Anatolian Pipeline (TANAP) at the Turkish-Greek border in Kipoi, crosses Greece and Albania and the Adriatic Sea, before coming ashore in Southern Italy.
Proceeds from the deal—expected to close in this year’s fourth quarter subject to customary regulatory and partner approvals required—will contribute to bp’s 2024 divestment and other proceeds target of $2-3 billion, the company said.
The transaction is expected to close in 4Q 2024, subject to customary regulatory and partner approvals required.
TAP’s shareholding was comprised of bp (20%), SOCAR (20%), Snam (20%), Fluxys (20%), Enagás (20%).