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BP plc BP, the UK-based energy major, has secured a $1 billion deal with Apollo-managed funds to divest a 25% non-controlling stake in BP Pipelines (TANAP), which holds BP’s 12% interest in the Trans-Anatolian Natural Gas Pipeline (TANAP). This pipeline is a crucial segment of the Southern Gas Corridor (“SGC”), transporting natural gas from Azerbaijan’s Shah Deniz field to European markets via Türkiye.
The agreement builds on the companies' previous transaction in November 2024, when Apollo acquired a stake in the Trans Adriatic Pipeline, the final leg of the SGC. The latest deal allows BP to monetize infrastructure assets while maintaining strategic governance rights. William Lin, BP’s executive VP for Gas & Low Carbon Energy, emphasized that the transaction strengthens BP’s partnership with Apollo while ensuring continued involvement in the pipeline’s operations.
Apollo partner Skardon Baker highlighted the strong potential of leveraging the firm’s long-term capital to collaborate with BP, emphasizing the success of their partnership so far. The sale, expected to be closed in the second quarter of 2025, pending regulatory and shareholder approvals, should contribute to BP’s broader divestment program targeting $20 billion in proceeds.
TANAP spans approximately 1,800 kilometers across Türkiye, acting as the backbone of the SGC pipeline system. It plays a vital role in European energy security by delivering gas from the BP-operated Shah Deniz field in the Caspian Sea.
BP recently overcame a temporary shutdown at its Shah Deniz Alfa platform in January 2025 due to a subsea pipeline technical issue. Operations resumed swiftly after the issue was resolved. The Shah Deniz project, developed in two phases, has been a cornerstone of Azerbaijan’s gas exports since 2007. The second phase has further expanded production, with BP launching a 48-slot production, drilling and quarters platform in April 2024.
With this latest transaction, BP continues to optimize its portfolio while maintaining a stake in the energy infrastructure that’s vital for the European gas supply.
BP’s Zacks Rank & Key Picks
BP currently carries a Zack Rank #3 (Hold).
Investors interested in the energy sector may look at some better-ranked stocks like Archrock Inc. AROC, NextDecade Corporation NEXT and Oceaneering International, Inc. OII. While Archrock presently sports a Zacks Rank #1 (Strong Buy), NextDecade and Oceaneering carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.