Oil & Gas

BP, the British multinational energy company, has agreed to sell a stake in the Trans-Anatolian Gas Pipeline (TANAP) to Apollo Global Management for one billion US dollars. This marks the second such sale in just seven months. The deal, announced on March 21, 2025, sees BP sell a 25% share in a company that owns a 12% stake in the pipeline.

TANAP is a key gas pipeline linking Azerbaijan and Turkey, and this sale is part of BP’s broader strategy to reduce its debt and focus more on oil and gas.

The deal is part of BP's ongoing asset disposal program, led by CEO Murray O'Knickloss, aiming to raise $20 billion by 2027. BP’s current net debt stands at around $23 billion, and the company plans to reduce it to between $14 billion and $18 billion. While BP looks to shift focus away from renewable energy, it continues to increase investments in oil and gas ventures.

The company has also previously agreed to sell a stake in the Trans-Adriatic Pipeline, another component of the TANAP network, to Apollo in September 2024.

The TANAP pipeline itself plays a critical role in the geopolitical landscape of the South Caucasus. According to energy strategist Dr. Umud Shukri, the pipeline not only strengthens Azerbaijan's sovereignty but also enhances Turkey’s position as a crucial energy hub in the region.

It is vital for Azerbaijan’s energy diversification goals, helping reduce its dependence on Iran and Russia. The project has led to closer ties between Turkey and Azerbaijan, particularly in trade, security, and infrastructure development, contributing to regional stability.

Moreover, the pipeline supports European energy security by diversifying the continent’s energy sources. It helps reduce Europe’s reliance on Russian gas and contributes to the EU's broader strategy of improving energy resilience.

The Southern Gas Corridor, of which TANAP is a central part, is vital in these efforts, ensuring a more balanced energy environment. As Azerbaijan’s energy export capacity grows, the pipeline could also increase gas supplies to European markets, further stabilizing energy flows in the region.