BP Sells Majority Stake in Castrol for $6 Billion as Part of Strategic Reset

BP said it will sell a 65% stake in its Castrol division to Stonepeak Partners, generating roughly $6 billion in proceeds. BP will retain the remaining interest through a joint venture, maintaining exposure to Castrol’s future growth.

The transaction values Castrol at about $10.1 billion including debt, BP said, below earlier expectations of up to $10 billion for a full sale. Even so, the deal represents a substantial portion of BP’s $20 billion divestment program, aimed at cutting debt and sharpening focus on core businesses.

Castrol produces lubricants for automotive and industrial uses and has expanded into liquid cooling technologies for AI data centers, an area BP said offers growth potential. BP’s retained stake includes an option to sell down after a two-year lock-up period.

The sale follows a strategic overhaul announced in February under then-CEO Murray Auchincloss, as BP moved to refocus on oil and gas, reduce costs, and strengthen its balance sheet. Activist investor Elliott Investment Management has pushed BP to go further after years of underperformance.

Leadership changes have followed. BP recently appointed Meg O’Neill as its next chief executive, effective April, replacing Auchincloss. The Castrol deal is expected to close by the end of next year, pending regulatory approvals, as BP continues to reshape its portfolio.