BP has agreed to sell a majority stake in its Castrol lubricants business to U.S. investment firm Stonepeak as part of its effort to reduce debt. The transaction will see BP dispose of its 65% share for roughly $6 billion, valuing Castrol at $10.1 billion. The sale, expected to close by the end of 2026 pending regulatory approval, will place Castrol in a joint venture in which BP retains a minority interest.
The deal marks a significant step in BP’s broader 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, refocusing on its more profitable oil and gas operations while scaling back investment in clean energy. With the Castrol sale, BP has now completed or announced more than half of its targeted divestment program, a move that should substantially strengthen its balance sheet.
BP’s leadership is also changing. Energy‑industry veteran Meg O’Neill, currently chief executive of Australian group Woodside Energy, will replace Murray Auchincloss as chief executive in April. Her appointment brings significant experience to the role as BP continues to pivot back to its core oil and gas business and reduce debt.
Overall, the Castrol transaction is a key element of BP’s turnaround plan. The proceeds will provide a sizable boost to the company’s financial position, supporting its renewed focus on oil and gas and helping it navigate the challenges of the energy sector while driving growth in the years ahead.
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