The firm joined with Riverstone Holdings, Access Industries and other investors to sign the agreement subject to the closing of a merger between El Paso Corporation and US energy company Kinder Morgan.
El Paso’s oil and gas exploration unit is one of North America’s leading domestic oil and natural gas producers, with a strong interest in the emerging shale-drilling market on the continent.
Its assets include a large swathe of the Niobara shale oil field in Colorado and the Eagle Ford and Wolfcamp shale oil fields in Texas.
Last May El Paso said it would spin off the exploration arm to shareholders, but by October Kinder Morgan had agreed to buy the parent company and announced the subsidiary would instead be sold.
Apollo already has more than $75bn in private equity assets, credit-oriented capital markets and real estate funds invested across nine industries.
The firm suffered a $300m loss last year due to a dip in the fair value of its private equity and capital markets operations, compared to a $1.32bn profit the year before.
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