BP sells 25% gas pipeline stake for $1 billion

BP has announced that Apollo-managed funds will buy a 25% stake in its BP Pipelines, known as BP TANAP, for around $1 billion. This is the first major sale under BP's new plan to improve the company. The TANAP pipeline plays a crucial role in transporting natural gas from Azerbaijan to Europe, including countries like Italy and Greece. The deal is expected to finalize in the second quarter, pending approvals from regulators and shareholders. BP is aiming to raise $20 billion through asset sales as part of its turnaround strategy. This plan comes in response to pressure from investors like the activist group Elliott Investment Management, particularly after BP’s value dropped during its CEO Murray Auchincloss’s first year. To regain focus on fossil fuels, BP has adjusted its strategy after previously shifting away from hydrocarbons. The company is also considering selling its Castrol lubricants business, which could be worth up to $10 billion. Despite these efforts, investor reaction has been mixed, and BP’s stock fell following the announcement. Auchincloss has acknowledged the need for effective execution of the new strategy. However, some investors feel the plan lacks urgency and ambition.