UK oil and gas giant BP has now reached an agreement with Stonepeak to sell the infrastructure investor a 65 per cent shareholding in its Castrol lubricants brand at a value of roughly $10 bn.
The terms of the recent agreement will see BP keep a 35 per cent interest in the lubricant business after the transaction reaches completion. The company anticipates it will receive about $6 bn in net proceeds and dividend payments connected to the stake it retains. Proceeds from the deal will be employed to decrease the oil major’s net debt, and the sale is part of its continuing financial strategy.
The agreement will launch a brand-new joint venture where Stonepeak has a majority share and BP stays a minority stakeholder. As part of the transaction, BP has consented to a two-year-long lock-up term on the sale of the interest it retains, in line with the long-term performance of the lubricant business.
The Castrol brand is known internationally for its speciality products and lubricants that includes gas engine oil, cutting fluid, spindle oil, coolant, gear oil and grease, among others. The lubricant business will now benefit from the fresh investment from Stonepeak and aims to prioritise operational growth.
Commenting on the deal, BP said the agreement underlines its commitment to strengthening its current balance sheet and simplifying its portfolio.
The sale of the Castrol shareholding is expected to be complete by the close of 2026, after receiving regulatory approvals and closing conditions.
