In a press release posted on its web site on Friday, BP introduced that it and Apollo have reached agreements for Apollo-managed funds to buy a 25 p.c non-controlling stake in BP Pipelines (TANAP) Ltd.
Beneath the settlement, Apollo funds will buy the non-controlling shareholding in BP TANAP for a consideration of roughly $1.0 billion, the assertion famous, including that proceeds arising from this transaction will contribute in the direction of BP’s program for $20 billion in divestment and different proceeds.
The transaction is anticipated to shut within the second quarter of this 12 months, topic to regulatory and TANAP shareholders approvals, the assertion highlighted.
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Rigzone requested BP if it plans to promote extra BP Pipelines (TANAP) Ltd stake. A BP spokesperson declined to remark.
“Whereas the deal permits BP to monetize its curiosity in TANAP, BP will stay the controlling shareholder of BP TANAP and retain a long-term industrial and strategic curiosity, together with governance rights, within the pipeline – a significant a part of the fuel worth chain for the BP -operated Shah Deniz fuel area in Azerbaijan,” BP mentioned within the assertion posted on its website.
The corporate added that it and Apollo proceed to discover alternatives for additional cooperation, together with in infrastructure, fuel, and low carbon power belongings.
“We’re happy to increase our partnership with Apollo and to deepen our partnership on this key piece of power infrastructure for Europe,” William Lin, BP Govt Vice President Gasoline & Low Carbon Vitality, mentioned within the assertion.
“This unlocks capital from our international portfolio whereas retaining our position on this strategic asset for bringing Azerbaijan fuel to Europe. BP and Apollo will proceed to discover additional strategic cooperation and mutually helpful alternatives,” he added.
Skardon Baker, Apollo Companion, mentioned within the launch, “we see important potential with our scaled, long-term capital to associate with BP, in alignment with their strategic aims”.
“We’re happy by the extremely profitable partnership to this point,” Baker added.
Leslie Mapondera, additionally an Apollo associate, mentioned within the launch, “we worth the chance for our funds to additional associate with BP on this vital European infrastructure asset”.
“This funding underscores the relevance of Apollo’s capital for prime quality scaled infrastructure alternatives in Europe,” Mapondera added.
BP Pipelines (TANAP) Ltd is a BP subsidiary that holds BP’s 12 p.c curiosity in TANAP, BP identified within the assertion. TANAP is the proprietor and operator of the pipeline that carries pure fuel from Azerbaijan throughout Türkiye, the assertion outlined.
TANAP runs roughly 1,800 km throughout Türkiye and is the central part of the SGC pipeline system, the assertion highlighted, including that the SGC transports fuel from the BP-operated Shah Deniz fuel area within the Azerbaijan sector of the Caspian Sea to markets in Europe, together with Italy and Greece.
In its assertion, BP identified that, in November 2024, it and Apollo accomplished an settlement for Apollo to associate with BP on TAP, “the ultimate leg of the SGC”.
In a press release posted on its website in September final 12 months, BP introduced a deal for Apollo-managed funds to buy a non-controlling stake in BP Pipelines TAP Restricted, “the BP subsidiary that holds a 20 p.c share in Trans Adriatic Pipeline AG (TAP), in a transaction valued at roughly $1 billion”.
“Upon completion, BP will stay the controlling shareholder of BP Pipelines TAP Restricted,” BP mentioned in that assertion.
On this assertion, Lin mentioned, “we’re very happy to return along with Apollo on this key piece of Europe’s power infrastructure”.
“Importantly, whereas bringing in a brand new investor, this doesn’t diminish BP’s position in a strategic asset for our Azerbaijan fuel enterprise. We see nice potential in constructing modern preparations equivalent to this and look ahead to persevering with to discover additional alternatives with Apollo by means of rising this collaborative relationship,” he added.
Baker mentioned within the launch, “we’re happy to associate with bp on an settlement that can present our traders with long-term publicity to an industry-leading infrastructure asset with a steady money movement profile, whereas permitting BP to fulfill its aims of retaining management and executing on its capital effectivity technique”.
Mapondera mentioned on this launch, “this modern transaction construction is indicative of the forms of bespoke options we will present at Apollo, and we imagine we’re ideally positioned to execute on extra strategic transactions with BP”.
“Collectively, we see extra potential alternatives, as we glance to leverage Apollo’s long-term capital and sustainability and infrastructure funding experience to associate with BP on its strategic plans, together with power transition alternatives,” Mapondera continued.
In a press release posted on its web site on February 26, BP introduced a “essentially reset technique”. This technique will see BP develop its upstream oil and fuel enterprise, focus its downstream enterprise, and make investments with growing self-discipline into the transition, the corporate famous in that assertion.
In a separate assertion posted on its website on the identical day, BP introduced that it was finishing up a strategic evaluate of its Castrol enterprise “with the intention of accelerating Castrol’s subsequent section of worth supply”.
“The strategic evaluate of Castrol will contemplate all choices with a deal with worth creation. Proceeds from any potential transaction that will come up on account of the evaluate will probably be allotted to strengthening BP’s steadiness sheet,” BP mentioned in that assertion.
In one other assertion posted on the BP website on February 6, BP Europa SE introduced its intention to market its Ruhr Oel GmbH – BP Gelsenkirchen operation in Germany for potential sale. Its belongings embrace the BP refinery in Gelsenkirchen and DHC Solvent Chemie GmbH in Mülheim an der Ruhr, the corporate highlighted within the assertion.
“The advertising and marketing course of for an appropriate purchaser will start instantly with gross sales agreements focused for 2025,” the corporate famous within the assertion.
“Assuming that is profitable, timing for the completion of the sale and switch of the corporate to a brand new proprietor will probably be topic to regulatory and governmental approvals. Throughout the gross sales course of, the refinery will proceed to function as regular,” it added.
In a press release posted on its website final week, Apollo introduced that funds managed by Apollo associates have agreed to amass a majority stake in OEG Vitality Group from funds managed by the Energy Alternatives technique of Oaktree Capital Administration LP and different traders.
The transaction implies a headline valuation of greater than $1 billion for OEG, and Oaktree and others will retain a minority fairness curiosity within the firm, Apollo mentioned in that assertion, which described OEG as a number one offshore power options enterprise.
To contact the writer, electronic mail andreas.exarheas@rigzone.com
