BP and Apollo have reached an agreement for Apollo-managed funds to acquire a 25% non-controlling stake in BP Pipelines (TANAP) Ltd.

The transaction, valued at approximately $1 billion, involves BP's subsidiary that holds its 12% interest in the Trans-Anatolian Natural Gas Pipeline (TANAP), which transports natural gas from Azerbaijan across Turkey.

Under the agreement, BP will remain the controlling shareholder of BP TANAP and retain a long-term commercial and strategic interest in the pipeline, a key component of the gas value chain for the BP-operated Shah Deniz gas field in Azerbaijan. 

The proceeds from the sale will contribute to BP's $20 billion divestment program.

The TANAP pipeline, spanning approximately 1,800 kilometres across Turkey, forms the central section of the Southern Gas Corridor (SGC) pipeline system, which delivers gas from the Shah Deniz field in the Caspian Sea to European markets, including Italy and Greece.

The transaction is expected to close in the second quarter of 2025, pending approval from regulatory authorities and the TANAP shareholder.

"We are pleased to extend our partnership with Apollo and to deepen our partnership in this key piece of energy infrastructure for Europe," BP executive vice president of gas and low carbon energy, William Lin, said in a statement. 

"This unlocks capital from our global portfolio while retaining our role in this strategic asset for bringing Azerbaijan gas to Europe,” he added. 

In November 2024, BP and Apollo completed a previous agreement under which Apollo would partner with BP on the Trans Adriatic Pipeline (TAP), the final leg of the Southern Gas Corridor (SGC).

BP and Apollo said they would continue to explore opportunities for further cooperation, including in infrastructure, gas, and low-carbon energy assets.