LONDON (Realist English). British energy major BP has agreed to sell its 65% stake in lubricant brand Castrol to US investment firm Stonepeak for $10.1 billion, the company announced on Wednesday.
BP said the transaction is expected to generate around $6 billion in net proceeds. This includes approximately $800 million from the pre-payment of future dividend income linked to BP’s remaining 35% holding in Castrol, alongside other financial adjustments. The sale forms part of BP’s previously announced $20 billion divestment programme.
Following the deal, BP said total completed and disclosed divestments now amount to about $11 billion, taking the company beyond the halfway mark of its overall target. All proceeds from the transaction will be used to reduce net debt, supporting BP’s goal of lowering debt to between $14 billion and $18 billion by the end of 2027.
Interim chief executive Carol Howle said the sale delivers significant value for shareholders, strengthens BP’s balance sheet and represents an important milestone in the company’s strategic reset, which is focused on simplifying its portfolio and sharpening its core downstream operations.