By Ayomide Otitoju
British oil giant BP announced on Wednesday that it has agreed to sell a 65 per cent stake in its Castrol lubricants business to US investment firm Stonepeak, in a move aimed at reducing debt. The transaction, which values Castrol at $10.1 billion, is expected to close by the end of 2026. BP will retain a minority stake in the joint venture.
“The sale marks an important milestone in the ongoing delivery of our reset strategy,” said interim CEO Carol Howle.
The divestment is part of BP’s broader plan to sell $20 billion of assets by the end of 2027, as the company shifts focus back to its core oil and gas business while scaling back investments in clean energy. Howle added, “We have now completed or announced over half of our targeted $20 billion divestment programme, with proceeds to significantly strengthen BP’s balance sheet.”
The shakeup at BP continues, with the company last week appointing energy veteran Meg O’Neill as chief executive from April, succeeding Murray Auchincloss. O’Neill, an American, currently serves as CEO of Australian firm Woodside Energy.
