Prime Highlights:
- BP has sold 65% of its Castrol lubricants business to Stonepeak for $6 billion as part of its $20 billion asset divestment plan.
- The sale is a major step in BP’s strategy reset, helping the company simplify operations and concentrate on its core oil and gas business.
Key Facts:
- BP retains the option to sell the remaining 35% stake in Castrol after a two-year lock-up period.
- The company’s stock has risen about 9% in 2025, recovering from a 15.7% drop in 2024, following leadership changes, cost-cutting measures, and new oil discoveries.
Background:
British oil giant BP has agreed to sell a 65% stake in its lubricants business, Castrol, to private equity firm Stonepeak for $6 billion. The transaction values the unit at $10.1 billion and marks a key step in BP’s plan to divest $20 billion in assets by the end of 2027.
BP is making this move to focus more on its main oil and gas business, as part of a new strategy that also updates its green plans. Interim CEO Carol Howle said the sale is a key step in BP’s strategy reset, helping the company simplify operations, focus on its main businesses, and speed up its plans.
BP retains the option to sell the remaining 35% stake in Castrol after a two-year lock-up period. The decision follows a recent leadership change, with Woodside Energy’s Meg O’Neill set to take over as CEO on April 1, replacing Murray Auchincloss.
The company’s shares opened 1.3% higher on Wednesday before paring gains slightly, trading 0.9% up. BP’s stock is up 9% in 2025, bouncing back from a 15.7% fall in 2024, after leadership changes, cost cuts, and new oil finds.
Analysts say the Castrol sale fits BP’s plan to focus on oil and gas exploration and streamline its operations. Energy players such as India’s Reliance Industries and Saudi Aramco, along with private equity firms, were among the potential buyers considered earlier this year.
