BP has agreed to sell a majority stake in its Castrol lubricants business to US investment firm Stonepeak, as part of its efforts to reduce debt. The sale of BP’s 65% stake is expected to generate around $6 billion, with the deal valuing Castrol at $10.1 billion. The transaction, which is anticipated to be completed by the end of 2026, will result in Castrol being owned by a joint venture, with BP retaining a minority stake.

This move marks a significant step in BP’s strategy to reset its business, according to interim chief executive Carol Howle. The company aims to divest $20 billion of assets by the end of 2027, as it seeks to refocus on its more profitable oil and gas business and reduce its investment in clean energy. With this sale, BP has now completed or announced over half of its targeted divestment program, which is expected to substantially strengthen its balance sheet.

The decision to sell its stake in Castrol is part of BP’s broader efforts to turnaround its performance, which has lagged in recent years. The company has been working to pivot back to its core oil and gas business, while also reducing its debt. The proceeds from the sale will help to achieve this goal, providing a significant boost to BP’s financial position.

BP has also recently announced changes to its leadership, with energy industry veteran Meg O’Neill set to become chief executive in April, replacing Murray Auchincloss. O’Neill joins BP from her position as chief executive of Australian group Woodside Energy, bringing significant experience and expertise to the role.

The sale of BP’s stake in Castrol is expected to be completed by the end of 2026, subject to regulatory approvals. The deal is a significant development in BP’s efforts to reset its business and improve its financial position. As the company continues to navigate the challenges of the energy sector, this move is seen as an important step towards achieving its strategic goals. With its renewed focus on oil and gas, BP is poised to strengthen its position in the market and drive growth in the years to come.