BP sells 65% stake in Castrol to Stonepeak for $6 billion
BP has agreed to sell a 65% stake in its Castrol lubricants business to investment firm Stonepeak for approximately $6 billion, valuing the unit at $10.1 billion.
BP will retain a 35% interest in the new joint venture, allowing it to remain part of Castrol’s growth strategy. Stonepeak may sell its stake after a two-year lock-in period. Canada Pension Plan Investment Board will invest up to $1.05 billion, gaining an indirect stake in Castrol, News.Az reports, citing Reuters.
“The proceeds, including $800 million for accelerated dividend payments, will be used to reduce debt,” BP said.
The sale is a key part of BP’s plan to divest around $20 billion in assets by 2027 and improve profitability. The lubricants business had been under review since February 2025 as part of a broader strategy to reshape the company’s portfolio.
BP recently appointed Meg O’Neill, former CEO of Woodside Energy, as its next CEO to enhance profitability and share performance, which has lagged behind competitors like Exxon.
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