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In a strategic move to streamline its operations and reduce debt, BP has sold a 65% majority stake in its Castrol motor oil division to New York-based investment firm Stonepeak for $6 billion. The deal values Castrol, known for its automotive and industrial lubricants, at $10.1 billion, allowing the oil giant to refocus on its core business activities.
BP will hold onto a 35% stake in Castrol, which it first took control of in 2000.
The London-based oil major said the sale is a "milestone" in its plans to overhaul its business and strip out costs.
BP in February announced plans to sell off $20bn worth of assets in a bid to focus on its core crude oil and gas business and strengthen its balance sheet. Following today's deal and previous announcements, the company says it's over half way to meeting that target.
It is also shifting its strategy away from investment in green energy and renewing its focus on oil and gas following pressure from some investors who were frustrated that its profits and share price had lagged behind rivals.
Rivals Shell and Norwegian company Equinor have also scaled back plans to invest in green energy and US President Donald Trump's call to "drill baby drill" has encouraged firms to invest in fossil fuels.
The Castrol sale comes a week after BP unveiled its first female chief executive, Meg O'Neill, who will take the helm in April 2026. Her surprise appointment came only three months after BP appointed a new chairman, Albert Manifold. And she was handed the top job less than two years after Murray Auchincloss took over from Bernard Looney as chief executive.
Shares in BP opened higher on Wednesday morning on the news, before giving up most of their gains.
Wednesday's deal is the latest in a series of sales by the firm, which included offloading its US onshore wind energy business and its Dutch mobility and convenience arm.
