BAKU, Azerbaijan, September 19. Freshfields Bruckhaus Deringer has advised bp on the sale of a non-controlling stake in its subsidiary, bp Pipelines TAP Limited, to funds managed by Apollo, Trend reports via Freshfields.
The bp subsidiary holds a 20 percent interest in Trans Adriatic Pipeline AG. The transaction, valued at approximately $1 billion, is expected to close in the fourth quarter of 2024, pending regulatory and partner approvals.
bp and Apollo recently announced an agreement for Apollo-managed funds (the “Apollo Funds”) to purchase a non-controlling stake in bp Pipelines TAP Limited, the bp subsidiary that holds a 20 percent share in Trans Adriatic Pipeline AG (TAP) in a transaction valued at approximately $1 billion. Upon completion, bp will remain the controlling shareholder of bp Pipelines TAP Limited.
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.
TAP transports natural gas from the giant Shah Deniz field in the Azerbaijani sector of the Caspian Sea to Europe. The 877 km long 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.
TAP facilitates gas supplies to Southeastern European countries through existing and prospective interconnectors. TAP is connected to Interconnector Greece Bulgaria (IGB) which started its commercial operations in October 2022, providing Caspian gas to Bulgaria, thereby enhancing the security of energy supplies in one more European country. TAP’s exit points in Greece and Albania, together with the landfall in Italy provide multiple opportunities for further transport of gas from Azerbaijan to the wider European markets.
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