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BP has struck a $6 billion deal to sell a controlling interest in its lubricants business Castrol to a US investment firm.
The Specifics Behind the Transaction
The oil giant sold a 65 percent share in Castrol, which makes oils for cars, motorcycles and industrial vehicles, to New York-based Stonepeak.
This transaction valued Castrol at $10.1 billion, with BP receiving $6 billion cash, which it will use to pay down debts and allow it to focus on its core business.
BP will retain a 35% stake in Castrol, which it originally acquired in the year 2000.
A Strategic Shift and Asset Sales
The UK-headquartered oil major said the sale is a "milestone" in its plans to restructure its business and reduce costs.
BP in February announced plans to sell off $20bn worth of holdings in a bid to prioritize its primary fossil fuel operations and strengthen its balance sheet.
Following today's deal and earlier disclosures, the company says it is more than halfway to meeting that target.
It is also shifting its strategy away from funding for renewable power and renewing its focus on fossil fuels following pressure from some shareholders who were frustrated that its earnings and share price had trailed competitors.
Industry Trends and Leadership Updates
Competitors like Shell and Norwegian company Equinor have also scaled back plans to put money into renewables.
The Castrol sale comes a week after BP unveiled its inaugural woman CEO, Meg O'Neill, who will take the helm in April 2026.
Her unexpected selection occurred only three months after BP appointed a new board chair, Albert Manifold.
And she was given the CEO role less than two years after Murray Auchincloss succeeded Bernard Looney as chief executive.
Continuing Portfolio Simplification
This recent transaction is the latest in a series of divestments by the firm, which included selling its American wind power assets and its Dutch mobility and convenience arm.
Acting CEO Carol Howle said the sale is a "very good outcome for all parties involved".
"We are reducing complexity, concentrating our refining and marketing on our leading integrated businesses, and accelerating delivery of our strategy," she stated.
