BP has finalized a $6 billion deal to sell a majority stake in its motor oil division, Castrol, to New York-based investment firm Stonepeak. The oil giant sold 65% of Castrol, which produces lubricants for cars, motorcycles, and industrial vehicles. This deal values Castrol at $10.1 billion, with BP keeping a 35% stake.
The cash proceeds will help BP reduce debt and concentrate on its core oil and gas operations. The London-based company described the sale as a key step in simplifying its business and cutting costs.
Earlier this year, BP announced plans to divest $20 billion worth of assets to strengthen its balance sheet and focus on crude oil and gas. With the Castrol transaction, the company is now more than halfway toward achieving this target.
The move also reflects a strategic shift. BP is reducing its focus on green energy investments following pressure from investors unhappy with its profit margins and share price performance compared with competitors. Similar trends have been seen with rivals Shell and Equinor, as well as a wider push for fossil fuel production encouraged by policies such as former US President Donald Trump’s “drill baby drill” campaign.
