BP Plc has announced that funds managed by Apollo will buy a 25% minority stake in BP Pipelines, also called BP TANAP, for approximately $1 billion. This move represents the first step in the British energy company's plan to revamp its operations.

The BP TANAP entity possesses BP's 12% share in the Trans-Anatolian natural gas pipeline, which is a crucial part of the Southern Gas Corridor system that transports gas from the Shah Deniz field in the Caspian Sea's Azerbaijani region to European markets, including Italy and Greece via Turkey.

The transaction is expected to be finalized in the second quarter, pending regulatory and TANAP shareholder approvals. The proceeds from this deal will be used to support BP's $20 billion divestment initiative, as per the company's statement released on Friday.

Facing pressure from investors like Elliott Investment Management, BP has altered its course under CEO Murray Auchincloss. Following a decline in the company's value during Auchincloss's first year at the helm, BP declared in February its intention to refocus on fossil fuels after previously exploring a shift away from hydrocarbons.

As part of this strategic shift, BP aims to undergo divestments totaling $20 billion by the end of 2027 to strengthen its cash position.

BP's Executive Vice President, William Lin, stated in the announcement that the move will release capital from the company's global portfolio while maintaining involvement in the vital project of supplying Azerbaijani gas to Europe.