BP to sell 65% stake in Castrol to Stonepeak in $10 billion deal
Transaction strengthens BP’s balance sheet and accelerates its reset strategy.
BP has agreed to sell a 65% shareholding in Castrol to Stonepeak at an enterprise value of $10 billion, creating a new joint venture where the company will retain a 35% stake. The deal follows a strategic review of Castrol and is expected to close by the end of 2026.
The transaction will generate approximately $6 billion in net proceeds for BP, including accelerated dividend payments, which will be fully used to reduce net debt. The energy giant said the sale marks a major milestone in its $20 billion divestment program, with over half now completed or announced.
“Today’s announcement is a very good outcome for all stakeholders,” said Carol Howle, interim CEO at BP. “We are reducing complexity, focusing the downstream on our leading integrated businesses, and accelerating delivery of our plan.”
Stonepeak highlighted Castrol’s strong market position and heritage. “Lubricants are a mission-critical product, which are essential to the safe and efficient functioning of virtually every vehicle, machine, and industrial process in the world,” said Anthony Borreca, Senior Managing Director at Stonepeak. “We are excited to work alongside Castrol’s talented employees, coupled with bp’s continued guidance as a minority interest holder, as we support the business’s continued growth.”
BP’s retained stake ensures exposure to Castrol’s growth plan while maintaining flexibility to realize further value in the future. All proceeds will contribute to the company’s target of reducing net debt to $14–18 billion by 2027.
