New York-based investor Apollo Global Management signed Monday a deal valued at approximately $1 billion to acquire a non-controlling stake in British oil giant bp's major Caspian-region natural gas pipeline.
Under the deal, Apollo Funds will become a non-controlling shareholder in bp Pipelines TAP Limited, an entity which holds a 20% share in Trans Adriatic Pipeline AG (TAP), the British oil major said in a statement.
Upon completion, bp will remain the controlling shareholder of bp Pipelines TAP Limited, it added.
TAP is the owner and operator of the final 880-kilometer leg of the Southern Gas Corridor, a critical infrastructure asset for meeting European energy demand, the statement noted.
The pipeline transports natural gas from the bp-operated Shah Deniz gas field in Azerbaijan to markets in Europe such as Greece and Italy.
Commenting on the deal, William Lin, bp EVP gas and low carbon energy, hailed the cooperation with Apollo 'on this key piece of Europe's energy infrastructure.'
“Importantly, while bringing in a new investor, this does not diminish bp's role in a strategic asset for our Azerbaijan gas business,' Lin said.
'We see great potential in building innovative arrangements such as this and look forward to continuing to explore further opportunities with Apollo through growing this collaborative relationship.' Lin added.
By Handan Kazanci
Anadolu Agency
energy@aa.com.tr