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BP has struck a $6 billion agreement to sell a majority stake in its motor oil division Castrol to a US investment firm.
Details of the Transaction
The oil giant sold a 65 percent share in Castrol, which makes lubricants for automobiles, bikes, and commercial machinery, to the New York firm Stonepeak.
This deal valued Castrol at $10.1 billion, with BP receiving $6 billion cash, which it will allocate to reducing debts and enable it to focus on its primary operations.
BP will retain a 35 percent share in Castrol, which it first took control of in the year 2000.
A Strategic Pivot and Asset Sales
The London-based oil major stated the sale represents a "milestone" in its plans to restructure its business and reduce costs.
BP in February revealed intentions to divest $20bn worth of assets in a bid to prioritize its core crude oil and gas business and strengthen its balance sheet.
Following today's deal and previous announcements, the company says it is more than halfway to meeting that target.
It is also shifting its strategy from investment in green energy and refocusing on its emphasis on fossil fuels following calls by some shareholders who were disappointed that its profits and share price had lagged behind rivals.
Industry Context and Leadership Updates
Rivals like Shell and Norway's Equinor have also reduced plans to put money into renewables.
The Castrol sale comes a week after BP unveiled its first female chief executive, Meg O'Neill, who will take the helm in April 2026.
Her surprise appointment came only three months after BP named a new board chair, Albert Manifold.
And she was handed the top job less than two years after Murray Auchincloss took over from Bernard Looney as CEO.
Ongoing Business Simplification
This recent transaction is the most recent in a line of divestments by the firm, which have included offloading its US onshore wind energy business and its Netherlands-based retail and fuel operations.
Interim chief executive Carol Howle said the sale is a "very good outcome for all parties involved".
"We are simplifying our structure, focusing the downstream on our leading integrated businesses, and accelerating delivery of our strategy," she added.
