BP Sells 65% Of Castrol, Unlocks $6 Billion To Slash Debt

by | Dec 24, 2025 | General

BP PLC (NYSE:BP) is strategically streamlining its portfolio by selling a controlling stake in its Castrol lubricants business. This move is designed to bolster BP’s balance sheet and simplify its operations, while supporting the company’s commitment to financial discipline and maintaining assets that generate consistent cash flow.

BP will sell 65% of Castrol to infrastructure investor Stonepeak. The deal values the business at about $10.1 billion. The transaction is expected to generate approximately $6 billion in net proceeds for BP.

This includes an advance tied to dividend income from its remaining stake. The company stated that all proceeds will be used to reduce its net debt.

Also Read: BP Appoints First Female CEO In 116-Year History As Auchincloss Steps Down In Less Than Two Years

The sale follows a strategic review of Castrol and advances BP’s $20 billion divestment program. By retaining a minority interest, BP reduces complexity but still participates in Castrol’s growth. Castrol has produced nine consecutive quarters of year-over-year earnings gains.

The deal is expected to close by the end of 2026, subject to regulatory approvals. Castrol will then operate as a joint venture, with Stonepeak owning 65% and BP owning 35%.

A two-year lockup will apply to BP’s stake. After this period, BP may choose to exit further.

Management Commentary

BP interim CEO Carol Howle called the Castrol deal “a very good outcome for all stakeholders,” saying the sale to Stonepeak crystallizes shareholder value, advances more than half of BP’s $20 billion divestment plan, and strengthens the balance sheet as the company sharpens its reset strategy.

Stonepeak’s Anthony Borreca said lubricants are “mission-critical” across vehicles and industry, adding that Castrol’s long heritage, strong brand, and differentiated products position it well for continued growth as Stonepeak partners with BP as a minority holder.

BP Price Action: BP shares were up 0.35% at $34.70 during premarket trading on Wednesday, according to Benzinga Pro data.

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