British oil major BP announced on Wednesday that it has reached an agreement to sell its 65% stake in lubricant business Castrol to US-based investment firm Stonepeak for $10.1 billion. The company described the transaction as a major step in accelerating its strategy, which focuses on simplifying its portfolio, strengthening its balance sheet, and sharpening its downstream operations around core integrated businesses.
BP said the deal is expected to generate around $6 billion in net proceeds. This figure includes approximately $800 million linked to the pre-payment of future dividend income from BP’s remaining 35% stake in Castrol over the short to medium term, along with other financial adjustments. The company confirmed that the transaction forms part of its previously announced $20 billion divestment program.
With this sale, BP said total completed and disclosed divestment proceeds now stand at about $11 billion, exceeding half of its overall target. All proceeds from the transaction will be used to reduce net debt, supporting BP’s goal of bringing debt levels down to between $14 billion and $18 billion by the end of 2027. Interim CEO Carol Howle said the sale delivers significant value to shareholders, strengthens BP’s balance sheet, and marks an important milestone in the execution of the company’s reset strategy.
