BP completes $6B sale of Castrol stake
Key points
- BP completed the sale of a 65% stake in its Castrol lubricants business to US investment firm Stonepeak Partners.
- The transaction provides approximately $6 billion in cash proceeds to support BP's debt reduction efforts.
- BP plans to simplify its operations, reduce financial obligations and concentrate investment on its core upstream, downstream and trading businesses.
BP (NYSE:BP) completed the sale of a 65% stake in its Castrol lubricants business to Stonepeak Partners, generating approximately $6 billion in cash proceeds to support its debt reduction programme.
The agreement follows BP's decision at the end of 2025 to sell a majority interest in Castrol as part of a broader effort to simplify its operations and strengthen its balance sheet.
"This deal brings meaningful cash proceeds to BP today while retaining a valuable stake in Castrol's future growth," said BP Chief Executive Officer Meg O'Neill.
The transaction leaves BP with a minority interest in Castrol, while the business gains greater independence under Stonepeak's majority ownership and the company receives cash to address its financial obligations.
BP said the proceeds will support debt reduction, following reported net debt of $13.87 billion at September 30, 2026;
The company has completed several asset disposals as part of its portfolio restructuring, directing attention towards its upstream oil and gas operations, downstream activities and energy trading business.
O'Neill, who became BP's chief executive in April 2026, is preparing to present the company's longer-term strategy in December as it continues efforts to improve financial performance and reduce debt.
