BP has finalized a six billion dollar deal. The company sells a majority stake in its Castrol motor oil division. US investment firm Stonepeak acquires the holding. The buyer operates from New York. BP transfers 65 percent of Castrol. The brand produces lubricants for cars, motorcycles, and industrial vehicles. The deal values Castrol at 10.1 billion dollars. BP receives six billion dollars in cash. Management plans to reduce debt and focus on core oil and gas operations.
BP retains a 35 percent stake in Castrol. The group first gained control of the brand in 2000. Executives called the sale a strategic milestone. BP aims to simplify operations and cut costs. The transaction forms part of a wider corporate overhaul.
Asset Sales Drive Restructuring
BP announced a large-scale divestment program in February. The company targets assets worth 20 billion dollars. Management wants to sharpen its focus on oil and gas. BP also aims to strengthen its balance sheet. The company says progress has passed the halfway point. Earlier divestments helped accelerate the process.
BP has revised its long-term energy strategy. The group reduces spending on renewable energy projects. Some investors demanded change after weak performance. Profits and the share price lagged competitors. BP now prioritizes conventional energy production.
Market Trends Shape Strategy
Other energy majors follow similar paths. Shell has slowed green energy investment. Norwegian firm Equinor has taken comparable steps. Political messaging has influenced corporate decisions. US President Donald Trump promoted expanded drilling. That approach encouraged renewed fossil fuel investment.
Leadership Changes Contextualize the Deal
The Castrol sale follows recent leadership changes. BP appointed its first female chief executive. Meg O’Neill will take over in April 2026. The decision surprised many analysts. BP had named a new chairman only months earlier. Albert Manifold recently assumed that role. O’Neill steps in less than two years after the previous transition. Murray Auchincloss replaced Bernard Looney during that period.
Investors Respond Cautiously
BP continues to divest non-core businesses. The company exited its US onshore wind operations. It also sold its Dutch mobility and convenience unit. Interim chief executive Carol Howle welcomed the deal. She said the transaction benefits all stakeholders. BP reduces complexity and accelerates delivery of its plan.
Market reaction remained cautious. Russ Mould of AJ Bell praised the transaction. He said the proceeds would ease borrowing pressures. The sale moves BP closer to its 2027 divestment target. BP shares rose early on Wednesday. Most gains faded later in the session.
