BP Sells Castrol

BP has agreed to sell a 65 percent stake in its Castrol lubricants business to US investment firm Stonepeak in a transaction valued at up to six billion dollars. The deal values Castrol at roughly ten point one billion dollars and forms part of BP’s wider divestment programme running through 2027.

The sale will generate net proceeds of around six billion dollars for BP, including an advance payment linked to future dividends. BP plans to use the funds to reduce its net debt, which stood at just over twenty six billion dollars at the end of September, in line with its target debt range by the end of 2027.

BP will retain a 35 percent holding in Castrol for at least two years, allowing it to remain exposed to Castrol’s growth strategy. The lubricants business operates in more than 150 countries across automotive, industrial, marine, and energy markets and has recently expanded into re refined base oils.

BP management said the transaction reflects strong investor interest in Castrol and supports the company’s aim to become a simpler and more profitable organisation under its incoming chief executive in 2026.