BP Sells Majority Stake in Castrol for $6bn as It Refocuses on Core Oil and Gas Business
BP has agreed to sell a controlling stake in its Castrol lubricants business in a deal worth $6bn (£4.4bn), as the energy giant accelerates efforts to streamline operations and reduce debt.
The London-listed company said it has sold a 65% stake in Castrol to US investment firm Stonepeak, valuing the motor oil brand at $10.1bn (£7.5bn). BP will retain a 35% shareholding in the business, which it has owned since 2000.
Castrol produces lubricants for cars, motorcycles and industrial vehicles and is one of BP’s best-known consumer-facing brands. BP said the cash proceeds from the transaction would be used to strengthen its balance sheet and support its focus on its core oil and gas operations.
The company described the sale as a key milestone in its broader restructuring plans. In February, BP announced it would divest $20bn (£15bn) worth of assets by 2027 in a bid to cut costs and sharpen its strategic priorities. Following the Castrol deal and earlier disposals, BP said it is now more than halfway towards that target.
BP has recently shifted away from aggressive investment in renewable energy, opting instead to concentrate on oil and gas after pressure from some investors who argued that its strategy had hurt profits and share performance. Rivals including Shell and Norway’s Equinor have also scaled back green energy ambitions, amid renewed global interest in fossil fuel production.
The Castrol transaction comes shortly after BP named Meg O’Neill as its next chief executive, making her the company’s first female CEO. She is due to take over in April 2026, following a period of leadership changes at the top of the group.
Interim chief executive Carol Howle said the sale represented a positive outcome for BP and its stakeholders, adding that the company was simplifying its portfolio and accelerating delivery of its long-term plans.
Market analysts welcomed the deal, noting that the proceeds would help ease BP’s debt burden and move it closer to its divestment goals. BP shares rose in early trading following the announcement before paring back gains later in the day.
