bp has reached an agreement to sell a 65% shareholding in Castrol to Stonepeak, valuing the lubricants business at about $10 billion on an enterprise value basis.
The transaction is expected to generate net proceeds of around $6 billion for bp, including accelerated dividend payments linked to its retained 35% stake. bp said the proceeds will be fully used to reduce net debt as part of its wider balance sheet reset.
Following completion, a new joint venture will be established with Stonepeak holding 65% and bp retaining 35%. bp said the retained stake will allow it to benefit from Castrol’s growth plans while preserving the option to monetise the remaining interest after a two-year lock-up period.
bp described the deal as a key step in its $20 billion divestment programme and a move that sharpens its focus on downstream businesses.
The transaction is expected to be completed by the end of 2026, subject to regulatory approvals.
