BP Sells 65% Stake in Castrol to Stonepeak for $6 Billion

BP Plc completed the sale of a 65% stake in its Castrol lubricants business to the US-based investment firm Stonepeak, generating $6 billion in after-tax proceeds. The company intends to use the funds to reduce financial obligations, including conventional debt, hybrid bonds, leases, and settlement payments related to the Deepwater Horizon disaster.

Castrol will now operate as a standalone company with its own management and governance, though BP retains a 35% stake. BP holds an option to sell this remaining interest after a two-year lock-up period. The transaction includes Castrol's minority interests in markets such as India, Vietnam, Saudi Arabia, and Thailand.

Chief Executive Officer Meg O’Neill stated that the deal provides meaningful cash proceeds while allowing Castrol greater independence to accelerate its delivery. This disposal is part of a broader strategy by BP to simplify its business and concentrate investment on core upstream, downstream, and trading operations.