BP has sealed a six billion dollar deal. The company sells a majority stake in its Castrol motor oil business. US investment firm Stonepeak becomes the new partner. The buyer operates from New York. BP hands over 65 percent of Castrol. The brand produces lubricants for cars, motorcycles, and industrial vehicles. The agreement values Castrol at 10.1 billion dollars. BP receives six billion dollars in cash. Management plans to reduce debt and strengthen financial stability.
BP keeps a 35 percent stake in Castrol. The group first took control of the brand in 2000. Executives called the sale a strategic milestone. BP wants to simplify its structure and cut costs. The transaction supports a broader corporate reset.
Asset Sales Accelerate Strategic Focus
BP announced a large divestment program in February. The company aims to sell assets worth 20 billion dollars. Management wants sharper focus on oil and gas. BP also seeks a stronger balance sheet. The company says progress has passed the halfway mark. Earlier deals helped move the plan forward.
BP has adjusted its long term energy strategy. The group cuts spending on renewable energy projects. Some investors demanded change after weak returns. Profits and the share price lagged competitors. BP now concentrates on conventional energy production.
Energy Sector Shifts Direction
Other major producers show similar moves. Shell has reduced green investment ambitions. Norwegian group Equinor has taken a comparable path. Political signals have shaped boardroom decisions. US President Donald Trump encouraged expanded drilling. That message boosted confidence in fossil fuel investment.
Leadership Changes Surround the Deal
The Castrol sale follows recent leadership changes. BP named its first female chief executive. Meg O’Neill will take the role in April 2026. The appointment surprised many analysts. BP had selected a new chairman months earlier. Albert Manifold recently assumed that position. O’Neill steps in less than two years after the previous change. Murray Auchincloss replaced Bernard Looney during that period.
Markets React to Castrol Exit
BP continues to exit non core businesses. The company sold its US onshore wind unit. It also divested its Dutch mobility and convenience business. Interim chief executive Carol Howle welcomed the agreement. She said the sale benefits all stakeholders. BP reduces complexity and speeds up execution.
Investors initially welcomed the announcement. Russ Mould of AJ Bell praised the transaction. He said the proceeds would cut borrowing levels. The deal advances the 2027 divestment target. BP shares rose early in trading. Most gains faded later in the session.
