16th Sep 2024 10:48
(Alliance News) - BP PLC on Monday said Apollo-managed funds will buy a non-controlling stake in bp Pipelines TAP Ltd, a BP subsidiary that holds a 20% stake in Trans Adriatic Pipeline AG.
London-based oil major BP said the transaction is valued at around USD1 billion.
Trans Adriatic Pipeline owns and operates the final 800-kilometre leg of the Southern Gas Corridor pipeline system. This transports natural gas to markets in Europe from the bp-operated Shah Deniz gas field in Azerbaijan's sector of the Caspian Sea.
William Lin, executive vice president at BP's gas & low carbon energy unit, 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, said: "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 is a global alternative asset manager.
BP shares were 0.5% higher at 406.20 pence each on Monday morning in London.
By Tom Budszus, Alliance News slot editor
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