BP Nears $10 Billion Castrol Stake Sale to Stonepeak

BP PLC (LON: BP) is reportedly close to finalizing a major deal to sell a majority stake in its Castrol lubricants business to global investment firm Stonepeak, a transaction that could value Castrol at approximately $10 billion including debt. According to a Wall Street Journal report citing people familiar with the matter, BP is expected to sell a 65% stake in Castrol and receive around $6 billion in cash proceeds.

Sources indicate that an official announcement could come as soon as Wednesday, although the timing remains uncertain and the transaction could still be delayed or fail to materialize. If completed, this deal would represent BP’s largest single asset divestiture to date and a pivotal move in the company’s broader strategic reset.

The potential sale aligns with BP’s efforts to improve financial performance following investor dissatisfaction with its aggressive push into renewable energy. In recent months, BP has shifted its focus back toward its core oil and gas operations, aiming to strengthen cash flow, reduce debt, and increase production. The company has set a target of $20 billion in asset sales by 2027, and the Castrol transaction would significantly advance that goal.

BP previously confirmed in February that it was reviewing strategic options for Castrol, which has long been considered a valuable but non-core asset. If the deal proceeds, BP’s announced and completed divestitures for the year would rise to roughly $11 billion, further supporting its balance sheet and capital allocation priorities.

Castrol, headquartered in the United Kingdom, is a globally recognized brand that sells lubricants and fuels in more than 150 countries. Its products serve a wide range of industries, including automotive, aerospace, marine, manufacturing, and mining. The business’s strong global footprint and stable cash generation make it an attractive investment for infrastructure-focused firms.

Stonepeak, which manages approximately $80 billion in assets, has been steadily increasing its exposure to the energy sector. Acquiring a majority stake in Castrol would mark a significant expansion of its energy portfolio and underscore investor interest in established, cash-generating energy-adjacent businesses.