bp and Apollo have announced an agreement for Apollo-managed funds to purchase a non-controlling stake in bp Pipelines TAP - the bp subsidiary that holds a 20% share in Trans Adriatic Pipeline AG (TAP) in a transaction worth $1 billion (€0.9 billion).
Upon completion, bp will remain the controlling shareholder of bp Pipelines TAP Limited.
Trans Adriatic Pipeline is the owner and operator of a key infrastructure asset for meeting European energy demand - the final 880-kilometre 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.
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.”
Skardon Baker, Apollo Partner, added: “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.”
Apollo partners with bp in Trans Adriatic Pipeline
