The US-based asset management company would become a non-controlling shareholder in BP's unit that holds a 20% stake in Trans Adriatic Pipeline AG.

Other shareholders, with 20% stake each, are Azerbaijan's state energy company SOCAR, Italy's Snam, opens new tab, Belgium-based Fluxys, opens new tab and Spain's Enagas.

The Trans Adriatic Pipeline (TAP) operates a natural gas transportation infrastructure from the Greek border with Turkey to Southern Italy.

Trans Adriatic Pipeline AG is the final 880-kilometre leg of the Southern Gas Corridor pipeline system - a 3,500-kilometre network stretching from the Caspian Sea to Europe. It transports natural gas from the BP-operated Shah Deniz gas field in the Azerbaijan sector of the Caspian Sea to markets in Europe such as Greece and Italy.

The proceeds from the deal would contribute to BP's 2024 divestment and other proceeds target of $2-3 billion, part of the company's disciplined financial frame.

"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," said Leslie Mapondera, Apollo Partner.

BP's shares rose 0.5% to 406.10p by 0830 GMT.

The deal is expected to close in the fourth quarter and BP will remain the controlling shareholder of the unit upon completion.

BP and Apollo will also look to partner on additional investment opportunities, including potential cooperation in both gas and low-carbon energy assets, and infrastructure, the companies said in a statement.

AzVision.az

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