BP said Monday it had completed the sale of a controlling stake in Castrol, securing $6 billion in net proceeds it plans to put toward debt reduction as it reshapes the group.
U.S. investment firm Stonepeak now holds 65% of the lubricants business. BP retains 35% through a joint venture. The companies agreed to the sale in December 2025 at an enterprise value of $10.1 billion; BP separately put the implied equity value at $8 billion.
The sale is part of BP’s $20 billion divestment program, which the company has tied to simplifying its business and strengthening its balance sheet. BP said Stonepeak has a preference over distributions from Castrol, meaning BP does not expect income or dividends from its remaining stake in the short to medium term.
BP reported net debt of $13.9 billion as of Sept. 30, following a $8.38 billion third-quarter decline. That figure predates the Castrol sale’s completion and does not include its proceeds.
Castrol’s newly appointed board is chaired by former Shell CEO Ben van Beurden. BP Chief Executive Meg O’Neill is scheduled to present the company’s longer-term strategy Dec. 15.
