BAKU, Azerbaijan, September 16. bp and Apollo have struck a deal for the Apollo Funds to take a backseat by acquiring a non-controlling stake in bp Pipelines TAP Limited, which holds a 20 percent slice of the pie in Trans Adriatic Pipeline AG (TAP), Trend reports.
According to bp, the transaction is valued at $1 billion.
bp emphasized that the companies also consider the possibility of further cooperation in gas, low-carbon energy assets, and infrastructure projects.
“We are pleased to come together with Apollo on this key piece of Europe’s energy infrastructure. This does not diminish bp’s role as a strategic asset for our Azerbaijan gas business. We see great potential in building innovative arrangements such as this,” William Lin, bp Executive Vice President on Gas and Low Carbon Energy, said, commenting on the issue.
The parties also mentioned that the transaction will contribute to bp’s 2024 divestment target of $2–3 billion.
The transaction is expected to close in the fourth quarter of this year, subject to customary regulatory and partner approvals required.
Apollo Partner Skardon Baker emphasized that the agreement will provide the 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.
To note, TAP is a key infrastructure asset for meeting European energy demand—the final 880-kilometer leg of the Southern Gas Corridor pipeline system that transports natural gas from the Shah Deniz gas field in the Azerbaijan sector of the Caspian Sea to markets in Europe such as Greece and Italy.
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