WORLD
BP to sell 65% in Castrol to Stonepeak for $6 billion to slash debt
- IBJ Bureau
- Dec 26, 2025
BP has agreed to sell a 65 per cent stake in its Castrol lubricants business to US private equity firm Stonepeak for about $6 billion. The deal is a significant step in the oil company’s $20-billion divestment plan, aimed at cutting debt and boosting returns.
The deal values Castrol at $10.1 billion and marks the British company’s most ambitious asset sale so far in its efforts to streamline operations and scale back its renewable energy investments after years of lagging rivals in performance of its share.
BP will retain a 35 per cent stake in a new joint venture with Stonepeak, which it can sell after a two-year, lock-in period.
“We continue to question the rationale (beyond the headline multiple) of selling this highly-cash-generative, low-volatility and low-capital-intensity asset, as ultimately this is detrimental to the long-term dividend sustainability and earnings quality of the business,” RBC analysts have said in a note.
The sale, which includes $800 million for accelerated dividend payments, comes after BP put the century-old lubricants unit under review earlier this year as a part of a broader strategy to focus on its core oil and gas business.
BP will use the sale proceeds to reduce debt, it has said. The company expects the deal to be completed by the end of 2026.
Stonepeak, an infrastructure-focused private equity firm, has investments in hard assets such as energy businesses and real estate and seeks assets that offer growth over the long-term.
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