Apollo Teams up with BP on Trans Adriatic Pipeline Project

BP and Apollo have announced a significant deal in which Apollo-managed funds will acquire a non-controlling stake in BP Pipelines TAP Limited. This subsidiary of BP holds a 20% interest in Trans Adriatic Pipeline AG (TAP), with the transaction valued at around $1 billion. Following the deal, BP will retain its position as the majority shareholder of BP Pipelines TAP Limited.

William Lin, BP’s EVP of Gas and Low Carbon Energy, expressed enthusiasm about the partnership, stating, “We are delighted to join forces with Apollo on this crucial piece of Europe’s energy infrastructure. This new investment does not diminish BP’s strategic role in our Azerbaijan gas business. We see significant potential in such innovative collaborations and look forward to exploring further opportunities with Apollo as we develop this relationship.”

The Trans Adriatic Pipeline AG operates a vital segment of the Southern Gas Corridor pipeline system, which transports natural gas from the Shah Deniz field, operated by BP in Azerbaijan, to European markets including Greece and Italy.

In addition to this transaction, BP and Apollo are exploring further investment opportunities together, potentially including collaborations in both gas and low carbon energy assets, as well as infrastructure projects. Skardon Baker, an Apollo Partner, commented, “We are excited to partner with BP on an agreement that offers our investors long-term exposure to a leading infrastructure asset with a stable cash flow, while allowing BP to retain control and advance its capital efficiency strategy.”

Leslie Mapondera, another Apollo Partner, added, “This unique transaction structure highlights the tailored solutions we can offer at Apollo. We are well-positioned to engage in additional strategic deals with BP and see substantial potential in leveraging Apollo’s expertise in long-term capital and sustainability. We look forward to collaborating on BP’s strategic plans, including opportunities related to the energy transition.”

The proceeds from this transaction will contribute to BP’s 2024 divestment target of $2-3 billion, as part of the company’s disciplined financial strategy. The deal is anticipated to close in the fourth quarter of 2024, pending customary regulatory and partner approvals.

Apollo is a rapidly expanding global alternative asset manager. The company aims to deliver superior returns for clients across the entire risk-reward spectrum, from investment grade to private equity, by focusing on three key investment strategies: yield, hybrid, and equity. With over thirty years of experience, Apollo’s comprehensive platform has consistently met clients' financial needs and offered innovative capital solutions to support business growth.