British energy giant BP has agreed to sell a stake in a firm invested in the TANAP gas pipeline linking Azerbaijan and Türkiye for $1 billion to Apollo Global Management, the two firms said on Friday.
Proceeds from the transaction will contribute toward BP's $20 billion disposal program through 2027, as the company looks to cut back on renewables while increasing spending on oil and gas.
BP aims to cut net debt to $14 billion-$18 billion from around $23 billion currently.
The TANAP pipeline is part of a network that allows natural gas transportation from Azerbaijan to Europe via Türkiye and forms the central part of the Southern Gas Corridor (SGC).
It carries the gas from the Shah Deniz gas field in the Azeri Caspian Sea to Italy and Greece.
BP is selling Apollo 25% of BP Pipelines, a company that holds a 12% stake in TANAP.
The transaction is anticipated to close in the second quarter of this year, subject to regulatory and TANAP shareholders' approvals.
BP agreed on a sale to Apollo last September of a stake in the BP unit that holds a 20% stake in the Trans Adriatic Pipeline (TAP), part of the same network as TANAP.
BP said it would continue to explore opportunities for further cooperation with Apollo, including in infrastructure, gas and low-carbon energy assets.
