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BP offloads majority stake in Castrol to Stonepeak
The UK energy giant has agreed to sell a 65% share of its motor oil division, Castrol, to New York-based investment firm Stonepeak for $6 billion (£4.4 billion), valuing the lubricants business at $10.1 billion (£7.5 billion).
Deal aligns with BP's $20bn asset sale target
BP will retain a 35% stake in Castrol, which it acquired in 2000. The cash injection will help reduce the company's debt and accelerate its strategy to streamline operations. The sale marks a significant step toward BP's goal of divesting $20 billion in assets by 2027, with the firm now over halfway to meeting that target.
Shift away from renewables amid investor pressure
BP's decision to sell Castrol reflects a broader pivot back to its core oil and gas business, following criticism from investors over underperformance compared to rivals like Shell and Equinor. The move mirrors an industry-wide trend, with many energy firms scaling back green energy investments in favor of fossil fuels. US political rhetoric, including calls to expand drilling, has further influenced this shift.
Leadership changes and recent divestments
The sale comes amid a period of leadership transition at BP. Meg O'Neill, the company's first female chief executive, is set to take over in April 2026, following a rapid succession of appointments. Her predecessor, Murray Auchincloss, stepped in after Bernard Looney's departure less than two years ago.
Recent divestments include BP's US onshore wind energy business and its Dutch mobility and convenience division. Interim CEO Carol Howle described the Castrol sale as a "very good outcome for all stakeholders," emphasizing the company's focus on simplifying operations and strengthening its core businesses.
Market reaction and analyst response
BP shares rose slightly on Wednesday morning following the announcement but later trimmed gains. Analysts welcomed the deal, with Russ Mould, investment director at AJ Bell, calling it an "early Christmas present" for shareholders. He noted that the proceeds would help BP reduce its debt burden and advance its divestment plans.
"We are reducing complexity, focusing the downstream on our leading integrated businesses, and accelerating delivery of our plan."
Carol Howle, Interim Chief Executive, BP
