2 weeks Ago By [email protected] (MENAFN)
Kirkland previously advised on the investment by Apollo-managedfunds in Trans Adriatic Pipeline AG in September 2024. bp and Apollo have reached agreements for Apollo managed fundsto purchase a 25% non-controlling stake in BP Pipelines (TANAP) Ltd– bp TANAP – the bp subsidiary that holds bp's 12% interest inTANAP, owner and operator of the pipeline that carries natural gasfrom Azerbaijan across Türkiye. Under the agreement, Apollo funds will purchase thenon-controlling shareholding in bp TANAP for a consideration ofapproximately $1.
0 billion. Proceeds arising from this transactionwill contribute towards bp's program for $20 billion in divestmentand other proceeds. While the deal enables bp to monetise its interest in TANAP, bpwill remain the controlling shareholder of bp TANAP and retain along-term commercial and strategic interest, including governancerights, in the pipeline - a vital part of the gas value chain forthe bp-operated Shah Deniz gas field in Azerbaijan.
The transaction is anticipated to close in 2Q 2025, subject toregulatory and TANAP shareholders approvals. TANAP transports gas from Stage 2 of Azerbaijan's Shah Denizfield from the Georgian-Turkish border to Türkiye's western border.The total cost of TANAP turned out to be lower than $7 billion.
The initial capacity of TANAP is 16 billion cubic meters of gasper year, with the possibility of expanding to 31 billion cubicmeters per year in the future. Around six billion cubic meters ofgas are delivered to Türkiye, while the rest of the volume issupplied to Europe. The filling of the TANAP pipeline across Türkiye began in lateJanuary 2018.
A ceremony to launch Phase 0 of TANAP took place on June 12,2018, in the Turkish city of Eskisehir. First commercial gasdeliveries to Türkiye commenced on June 30, 2018. The openingceremony of TANAP's connecting with Europe took place on Nov.
30,2019, in Ipsala town (Edirne province, Türkiye). For expansion, it is necessary to add several additionalcompressor stations in order to achieve a throughput of 24 billioncubic meters per year. To achieve a capacity of 31 billion cubicmeters, a total of seven compressor stations will be required.
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