BP to Sell Castrol Lubricants Stake to Stonepeak for $8 Billion; To Form New JV — Update
By Ian Walker
BP said it is selling a 65% stake in its Castrol lubricants business for $8 billion, as part of a plan to simplify the business following a review that started under former Chief Executive Officer Murray Auchincloss.
The oil major said Wednesday that it was selling the shareholding to investment firm Stonepeak and that the two companies would form a joint venture in which it will own 35%. BP has an option to sell its stake in the joint venture after a two-year lockup period.
BP said the deal has an enterprise value of $10.1 billion, which includes $1.8 billion in joint-venture minority interests and $0.3 billion of debt. It said a major part of Castrol joint-venture minority interests relate to BP's shareholding in Castrol India.
The Wall Street Journal reported late Tuesday that a deal to sell the shareholding was close, citing people familiar with the matter.
BP launched a review of the business in February to simplify the business, cut costs and boost shareholder returns. It is targeting asset sales of $20 billion by 2027 to help cut debt and boost oil-and-gas production.
The sale takes completed and announced divestment proceeds so far to around $11 billion, BP said Wednesday.
The company said the money raised from the sale would be used to reduce debt. BP has a target to cut debt to between $14 billion and $18 billion by the end of 2027. Debt stood at $26.1 billion at the end of the third quarter.
"The sale marks an important milestone in the ongoing delivery of our reset strategy. We are reducing complexity, focusing the downstream on our leading integrated businesses, and accelerating delivery of our plan," Interim CEO Carol Howle said.
The sale is expected to complete by the end of next year, subject to regulatory approvals.
On Thursday, BP said Auchincloss was stepping down from his role and would be replaced by Woodside Energy's Meg O'Neill, its first female CEO. O'Neill will take up the position on April 1. In the meantime Howle, BP's executive vice president of supply, trading and shipping, is serving as interim CEO.
Write to Ian Walker at ian.walker@wsj.com
(END) Dow Jones Newswires
December 24, 2025 02:58 ET (07:58 GMT)
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