On Friday, BP p.l.c ( BP ). disclosed that Apollo Global Management, Inc. ( APO ) -managed funds will acquire a 25% non-controlling stake in BP Pipelines (TANAP) Ltd – bp TANAP for around $1.0 billion.

This subsidiary holds BP's 12% interest in TANAP, the pipeline that transports natural gas from Azerbaijan through Turkey.

TANAP, stretching about 1,800 km across Turkey, is a key part of the Southern Gas Corridor (SGC) pipeline system.

The SGC delivers gas from the BP-operated Shah Deniz field in Azerbaijan to European markets, including Italy and Greece.

Both companies are also exploring further collaboration opportunities, particularly in infrastructure, gas, and low-carbon energy assets.

The proceeds from this transaction will contribute to BP’s $20 billion divestment and other proceeds program.

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The deal allows BP to monetize its interest in TANAP, while still retaining control as the majority shareholder of BP TANAP.

BP will also maintain a long-term commercial and strategic stake, including governance rights, in the pipeline, which is crucial for the gas value chain of the BP-operated Shah Deniz gas field in Azerbaijan.

The transaction is expected to close in the second quarter of 2025, subject to regulatory and TANAP shareholders’ approvals.

William Lin, BP executive vice president, gas & low-carbon energy, said, "This unlocks capital from our global portfolio while retaining our role in this strategic asset for bringing Azerbaijan gas to Europe. BP and Apollo will continue to explore further strategic cooperation and mutually beneficial opportunities."

Investors can gain exposure to the stock via Texas Capital Texas Oil Index ETF ( OILT )   and Precidian ETFs Trust BP plc ADRhedged .

Price Action: BP shares are up 0.06% at $34.77 premarket at the last check Friday.

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