BP completes USD6 billion sale of 65% stake in lubricants unit Castrol
(Alliance News) - BP PLC on Monday said it has completed the USD6 billion sale of a 65% stake in its lubricants brand Castrol to private equity firm Stonepeak Partners LP.
The London-based oil major said proceeds will further reduce financial obligations, in line with its first priority of strengthening the balance sheet.
On Friday, BP said net debt had fallen to USD13.87 billion at September 30 from USD26.05 billion the year prior, and that the closure of the Castrol sale was "imminent".
On Monday, BP Chief Executive Meg O'Neill said: "We are building a simpler, stronger, more valuable bp. This deal brings meaningful cash proceeds to bp today while retaining a valuable stake in Castrol's future growth."
Castrol will now operate as a standalone company with its own management, governance and strategic priorities, and BP will retain a 35% stake.
BP is subject to a two-year lock-up period on completion but then has the option to sell the remaining stake.
Back in February, BP announced a strategic review of Castrol as part of plans to raise USD20 billion by the end of 2027 through disposals.
Shares in BP were down 1.3% at 619.00 pence each in London on Monday morning.
By Jeremy Cutler, Alliance News reporter
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