BP agrees to sell a 65% stake in its Castrol lubricants business to US firm Stonepeak, valuing Castrol at $10.1 billion as part of a major divestment plan.
LONDON: British oil giant BP has agreed to sell a majority stake in its Castrol lubricants business to US investment firm Stonepeak.
The sale of BP’s 65% stake will net it around $6 billion, valuing the Castrol business at $10.1 billion.
The deal is expected to be completed by the end of 2026, with BP retaining a minority stake in a new joint venture.
“The sale marks an important milestone in the ongoing delivery of our reset strategy,” said interim chief executive Carol Howle.
BP plans to divest $20 billion of assets by the end of 2027 to strengthen its balance sheet and pivot back to its core oil and gas business.
“We have now completed or announced over half of our targeted $20 billion divestment programme,” Howle added.
The move is part of a broader corporate shakeup, following last week’s appointment of Meg O’Neill as the new chief executive from April.
O’Neill joins from Australian group Woodside Energy, replacing Murray Auchincloss.
