BP has reached an agreement to sell a 65% shareholding in its Castrol lubricants business to infrastructure investor Stonepeak at an enterprise value of approximately $10 billion.
Under the terms of the agreement, BP will retain a 35% interest in Castrol following completion of the transaction. The company expects to receive approximately $6 billion in net proceeds, including accelerated dividend payments related to its retained stake. Proceeds from the sale will be used to reduce BP’s net debt as part of its ongoing financial strategy.
The transaction will create a new joint venture in which Stonepeak holds the majority share, while BP remains a minority stakeholder. BP has agreed to a two-year lock-up period on the sale of its remaining interest, aligning its interests with the long-term performance of the business.
The Castrol business, known globally for its lubricants and specialty products, will benefit from Stonepeak’s investment and focus on operational growth. BP said the deal underscores its commitment to simplifying its portfolio and strengthening its balance sheet while maintaining exposure to Castrol’s future performance through its retained equity.
The sale is expected to close by the end of 2026, subject to regulatory approvals and customary closing conditions.
