BP sells $1 billion stake in European gas pipeline deal

BP has entered into a significant agreement with Apollo Global Management, resulting in a one billion US dollar investment for a stake in the Trans Adriatic Pipeline (TAP). This pipeline is crucial for transporting natural gas from the Greek-Turkish border to Italy and is part of the larger Southern Gas Corridor system. The deal allows Apollo to gain a share in a vital energy infrastructure while BP retains management control over the pipeline. The transaction aligns with BP's ongoing financial efficiency strategy, which aims to generate two to three billion dollars through divestments and other financial maneuvers. This initiative comes at a time when major energy companies are grappling with declining oil prices and reduced demand, which could impact their ability to provide shareholder returns through buybacks. BP has already completed a portion of its buyback plan, amounting to 1.75 billion dollars by May of this year, and is committed to maintaining a total buyback of 3.5 billion dollars. The partnership with Apollo is seen as a strategic move to enhance BP's financial position while ensuring continued investment in key energy assets. Both BP and Apollo expressed optimism about the collaboration, highlighting the potential for innovative arrangements in the energy sector. This partnership not only secures a stable income stream for Apollo but also reinforces BP's role in the European energy landscape, particularly in relation to its Azerbaijan gas business.