British BP to sell Trans-Anatolian Natural Gas Pipeline stake for $1B

British energy firm BP announced on Friday that it will sell a 25% non-operating stake in BP Pipelines—which includes its interest in the Trans-Anatolian Natural Gas Pipeline (TANAP)—to funds managed by U.S-based Apollo Global Management for approximately $1 billion.

The deal effectively means BP is selling one-quarter of its 12% stake in TANAP—equivalent to a 3% share in the pipeline—to the American private equity firm.

In addition to BP, Türkiye holds a 30% stake in TANAP through its state-owned energy company, BOTAS. Spanning approximately 1,800 kilometers across Türkiye, TANAP is the largest segment of the Southern Gas Corridor (SGC)—a major pipeline network that transports natural gas from the Shah Deniz field in the Caspian Sea, operated by BP, to European markets, including Italy and Greece.

Both companies stated they are exploring further collaboration opportunities, particularly in infrastructure, natural gas, and low-carbon energy assets.

BP shifts focus to oil, gas investments

The proceeds from the transaction will contribute to BP’s $20 billion divestment and income-generation program, which aims to fund the company’s strategic shift. BP’s new CEO, Murray Auchincloss, plans to reduce investments in renewables and increase focus on oil and gas, targeting $20 billion in asset sales by 2027.

While the deal allows BP to monetize part of its stake in TANAP, it will retain its position as the pipeline’s majority shareholder, maintaining strategic control.

BP will also preserve its long-term commercial and strategic interest in TANAP, including governance rights critical to the value chain of gas transported from the Shah Deniz field. The transaction is expected to close in the second quarter of 2025, subject to regulatory approvals and consent from TANAP shareholders.

“This unlocks capital from our global portfolio while retaining our role in this strategic asset for bringing Azerbaijan gas to Europe,” said William Lin, BP’s executive vice president of Gas and Low Carbon Energy. “BP and Apollo will continue to explore further strategic cooperation and mutually beneficial opportunities.”

Separately, on March 4, BP completed its exit from the Turkish retail fuel market, transferring its Turkish distribution subsidiary—which operates 770 fuel stations across the country—to Petrol Ofisi, the Turkish fuel distributor owned by Dutch energy group Vitol.