bp plc has agreed to a $1-billion deal with Apollo Global Management Inc. for non-controlling interest in bp Pipelines (TANAP) Ltd., the bp subsidiary that holds a 12% interest in the Trans Anatolian Pipeline (TANAP) that carries natural gas from Azerbaijan across Turkey.
Upon finalizing the transaction, bp said it will remain the controlling shareholder of bp TANAP and retain a long-term commercial and strategic interest—including governance rights—in the pipeline, a vital part of the gas value chain for the bp-operated Shah Deniz gas field in Azerbaijan.
Alongside enabling monetization of its interest in TANAP, bp said proceeds from the deal will contribute to the company’s recently announced commitment of $20 billion in divestments by 2027 (OGJ Online, Feb. 26, 2025).
The transaction is expected to close in second-quarter 2025, subject to customary regulatory and TANAP shareholders’ approvals.
“We are pleased to extend our partnership with Apollo and to deepen our partnership in this key piece of energy infrastructure for Europe." Said William Lin, bp’s executive vice-president of gas and low-carbon energy.
“This [proposed deal] unlocks capital from our global portfolio while retaining our role in this strategic asset for bringing Azerbaijan gas to Europe,” Lin added.
Running about 1,850 km across Turkey, TANAP forms the central section 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 previously completed a similar $1-billion deal in November 2024 for the sale of subsidiary bp Pipelines TAP Ltd.’s 20% interest in Trans Adriatic Pipeline AG (TAP), the final 877 km-long leg of SGC that connects with TANAP at the Turkish-Greek border in Kipoi, crosses Greece and Albania and the Adriatic Sea, before coming ashore in southern Italy (OGJ Online, Sept. 16, 2024).