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BP Sells $1B Stake in Key Azerbaijan-Turkiye Gas Pipeline
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BP plc (BP - Free Report) , 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.
Archrock is an energy infrastructure company based in the United States, with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues.
NextDecade is an emerging player in the LNG space with its Rio Grande LNG project in Texas. As demand for LNG continues to grow, the company’s strategic investments in infrastructure and planned liquefaction capacity provide strong upside potential. With the global LNG market expanding, NEXT is well-positioned to tap into the increasing export demand from the United States.
Oceaneering International delivers integrated technology solutions across all stages of the offshore oilfield lifecycle. With a geographically diverse asset portfolio and a balanced revenue mix between domestic and international operations, the company effectively mitigates risk. As a leading provider of offshore equipment and technology solutions to the energy sector, OII benefits from strong relationships with top-tier customers, ensuring revenue visibility and business stability.
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BP Sells $1B Stake in Key Azerbaijan-Turkiye Gas Pipeline
BP plc (BP - Free Report) , 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 - Free Report) , NextDecade Corporation (NEXT - Free Report) and Oceaneering International, Inc. (OII - Free Report) . 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.
Archrock is an energy infrastructure company based in the United States, with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues.
NextDecade is an emerging player in the LNG space with its Rio Grande LNG project in Texas. As demand for LNG continues to grow, the company’s strategic investments in infrastructure and planned liquefaction capacity provide strong upside potential. With the global LNG market expanding, NEXT is well-positioned to tap into the increasing export demand from the United States.
Oceaneering International delivers integrated technology solutions across all stages of the offshore oilfield lifecycle. With a geographically diverse asset portfolio and a balanced revenue mix between domestic and international operations, the company effectively mitigates risk. As a leading provider of offshore equipment and technology solutions to the energy sector, OII benefits from strong relationships with top-tier customers, ensuring revenue visibility and business stability.