BP to sell 65% of its stake in Castrol Lubricants for $10 billion to Stonepeak

Great Britain P.A. agreed to sell a 65% stake in lubricants company Castrol to Stonepeak for $6 billion, months after the oil giant looking for a buyer for unity.

The deal comes as the company seeks to launch a strategic reset, including a turnaround on its green strategy and the divestment of $20 billion in assets by the end of 2027. The sale values ​​Castrol at $10.1 billion.

Energy companies including India’s Reliance Industries and Saudi oil giant Aramco, as well as private equity firms Apollo Global Management and Lone Star Funds, had all been touted as suitors for BP’s Castrol unit in May, according to Bloombergciting people familiar with the matter.

“As a result, we have now completed or announced more than half of our targeted $20 billion divestment program, with proceeds that will significantly strengthen BP’s balance sheet,” interim CEO Carol Howle said in a statement.

“The sale marks an important milestone in the continued implementation of our reset strategy. We reduce complexity, focus downstream on our core integrated activities, and accelerate the implementation of our plan.

BP has the option to sell its remaining 35% stake in Castrol after a two-year lock-up period.

Castrol’s majority stake sale comes days after the oil giant announced his appointment a new CEO — this is the fourth in six years.

Woodside Energy boss Meg O’Neill will take up the role on April 1, replacing Murray Auchincloss, who held the role for less than two years.

Stephen Isaacs, a strategic advisor at Alvine Capital, which has a position in BP, told CNBC’s “Squawk Box Europe” last week that while BP has been “a very poor performer for a long, long time,” the CEO change could be “the last piece of the puzzle” to get its house in order.

“I think there will be further sales of stakes in different parts of BP” in the future, Dan Boardman-Weston, CEO of BRI Wealth Management, told CNBC on Wednesday. The move will see the company “return to its bread and butter of focusing on oil and gas exploration and development.”

The London-listed company has underperformed its peers of late, after reporting a decline in annual profits in both countries. 2023 And 2024.

BP shares opened up 1.3% on Wednesday before paring gains slightly to trade up 0.9%. Its stock price is up about 9% year to date, following a 15.7% decline in 2024. Pressure on the stock eased in 2025 following a 15.7% decline in 2024. leadership shakeupa cost reduction program, and a series of oil discoveries.