Investment firm Apollo Global Management has announced a $1 billion deal with BP today to acquire a non-controlling stake in the British energy giant's holding of the Trans Adriatic Pipeline (TAP).

The agreement grants Apollo a share in BP Pipelines TAP Limited, a subsidiary that holds BP's 20% interest in Trans Adriatic Pipeline AG. Other owners of the TAP include Italy's Snam, Azerbaijan's SOCAR, Spain's Enagas, and Belgium's Fluxys, each with a 20% stake.

TAP, stretching 880 kilometers, forms the final leg of the Southern Gas Corridor, a 3,500-kilometer pipeline network transporting natural gas from Azerbaijan's Caspian Sea Shah Deniz field, operated by BP, to European markets like Greece and Italy.

The proceeds from the deal will contribute to BP's 2024 divestment target of $2-3 billion.

"This partnership offers our investors long-term exposure to a leading infrastructure asset with stable cash flow while allowing BP to retain control and pursue its capital efficiency strategy," said Leslie Mapondera, Apollo Partner.

BP's shares rose slightly (0.5%) following the announcement. The deal is expected to close in the fourth quarter, and BP will maintain control of the subsidiary.

Both companies expressed interest in exploring further investment opportunities and collaborating on gas and low-carbon energy assets and infrastructure projects.