bp has agreed to sell a 65% stake in Castrol to Stonepeak for $10.1 billion. This sale is a key step in bp’s plan to streamline its operations and strengthen its finances. With this move, bp aims to focus more on its core businesses and improve overall performance.
The deal will bring bp approximately $6 billion, including around $800 million in pre-paid dividends from its remaining 35% stake in Castrol. After factoring in minority interests and other obligations that total about $2.1 billion, the overall value of Castrol is around $8 billion. Notably, some of these minority interests are linked to Castrol India Limited, a publicly traded company.
After the sale, bp will still own a 35% share in Castrol, giving it a chance to benefit from the company’s future growth. Castrol has shown strong performance, with nine consecutive quarters of growth. After a two-year period, bp will have the option to sell its remaining stake.
Carol Howle, bp’s interim CEO, highlighted that this sale supports bp’s ongoing efforts to simplify its business and enhance shareholder value. “It’s a good outcome for all involved,” she said. The deal also contributes significantly to bp’s goal of raising $20 billion through various divestments, with $11 billion already completed or announced.
Experts in the energy sector recognize the importance of Castrol’s products. Anthony Borreca, a senior executive at Stonepeak, pointed out that lubricants are vital for the smooth operation of vehicles and industrial processes. Castrol’s strong brand and long history make it a valuable asset, and Stonepeak looks forward to supporting its growth.
In today’s shifting energy landscape, companies are re-evaluating their strategies. A recent survey by Deloitte found that 80% of energy executives are prioritizing operational efficiency and cost management. For bp, this sale is one way to achieve those goals while preparing for a future that may involve more sustainable energy solutions.
The transaction is set to close by the end of 2026, pending regulatory approvals. As bp navigates this transition, it continues to focus on reducing debt and optimizing its portfolio. The company aims to cut its net debt to between $14 billion and $18 billion by the end of 2027. As of the third quarter of 2025, bp’s net debt was $26.1 billion.
Moving forward, bp plans to simplify its operations, enhance financial health, and concentrate on maximizing returns. This approach reflects the broader trend in the energy sector, where companies are adapting to new challenges and opportunities in a rapidly changing environment.
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