BP has finalized a six billion dollar transaction. The company sells a majority stake in its Castrol motor oil business. US investment firm Stonepeak acquires the holding. The buyer operates from New York. BP sells 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 lower debt and reinforce its core business.
BP retains a 35 percent stake in Castrol. The company first took control of the brand in 2000. Executives described the deal as a strategic milestone. BP wants to simplify operations and cut costs. The sale supports a wider restructuring effort.
Asset Disposal Strategy Gains Momentum
BP announced an ambitious divestment plan in February. The company aims to sell assets worth 20 billion dollars. Management wants to refocus on oil and gas production. BP also plans to strengthen its balance sheet. The company says progress has moved beyond halfway. Earlier asset sales helped reach that stage.
BP has revised its broader energy strategy. The group reduces spending on renewable energy projects. Some investors pushed for change after weak results. Profits and the share price lagged behind competitors. BP now places greater emphasis on conventional energy activities.
Energy Majors Follow Similar Course
Other major energy companies show comparable shifts. Shell has slowed investment in green energy projects. Norwegian group Equinor has taken similar steps. Political signals have influenced corporate thinking. US President Donald Trump promoted expanded drilling. That message encouraged renewed interest in fossil fuel investment.
Leadership Changes Frame the Transaction
The Castrol sale follows recent leadership changes. BP appointed its first female chief executive. Meg O’Neill will assume the role in April 2026. The decision surprised many industry observers. BP had named a new chairman only months earlier. Albert Manifold recently took on that position. O’Neill steps in less than two years after the previous transition. Murray Auchincloss replaced Bernard Looney during that period.
Mixed Market Reaction to the Deal
BP continues to exit non core businesses. The company sold its US onshore wind operations. It also divested its Dutch mobility and convenience unit. Interim chief executive Carol Howle welcomed the agreement. She said the deal delivers benefits for all stakeholders. BP reduces complexity and speeds up execution.
Investors initially reacted positively to the news. Russ Mould of AJ Bell praised the transaction. He said the proceeds would reduce borrowing pressure. The sale advances the divestment target for 2027. BP shares rose early in Wednesday trading. Most gains faded later in the session.
