• BP Sells One Billion US Dollar Stake In European Gas Pipeline – Independent Newspaper Nigeria

    Bp sells one billion us dollar stake in european gas pipeline independent newspaper nigeria - nigeria newspapers online
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    Proceeds from the deal with Apollo Global Management come as the energy giant pushes on with a financial efficiency drive.

    BP has struck a deal with Apollo Global Management which will see the US investment giant pay one billion US dollars for a stake in a major natural gas pipeline in southern Europe.

    Apollo will become a shareholder in BP’s subsidiary that holds a 20% stake in the Trans Adriatic Pipeline (TAP), which carries gas between the Greek-Turkish border and Italy.

    The pipeline is part of the Southern Gas Corridor pipeline system, a 3,500-kilometre network of infrastructure from the Caspian Sea to Europe.

    The deal means Apollo will get an income stream from the TAP, but BP will continue managing it.

    Meanwhile, BP is on a financial efficiency drive, with a target of bringing in two to three billion dollars from divestments and “other proceeds”, which this deal contributes to.

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    It comes as energy giants are facing a fall in oil prices amid weak demand, which threatens their ability to continue handing returns back to shareholders via buybacks.

    Earlier this year, BP said it was maintaining a 3.5 billion dollar buyback plan for this year, with 1.75 billion dollars completed by May.

    William Lin, BP executive vice president of gas and low-carbon energy, said: “We are very pleased to come together 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.

    “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.”

    Leslie Mapondera, partner at Apollo, added: “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.”

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