BP Sells Majority Stake in Motor Oil Division Castrol for $6 Billion.

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The company has finalized a $6bn agreement to sell a majority stake in its lubricants business Castrol to a American investment group.

Details of the Transaction

The oil giant sold a 65 percent share in Castrol, which makes oils for cars, motorcycles and industrial vehicles, to the New York firm Stonepeak.

This transaction valued Castrol at $10.1bn, with BP receiving $6 billion cash, which it will allocate to reducing debts and allow it to focus on its core business.

BP will hold onto a 35 percent share in Castrol, which it first took control of in the year 2000.

Strategic Pivot and Divestment Plan

The UK-headquartered energy corporation said the sale represents a "milestone" in its plans to restructure its business and reduce costs.

BP in February announced plans to sell off $20bn worth of holdings in a bid to prioritize its core crude oil and gas business and fortify its balance sheet.

After today's deal and earlier disclosures, the company says it is over half way to achieving that goal.

It is also changing its approach from investment in green energy and refocusing on its emphasis on fossil fuels following calls by some investors who were frustrated that its profits and share price had trailed rivals.

Industry Context and Leadership Updates

Competitors like Shell and Norway's Equinor have also reduced plans to put money into renewables.

The Castrol sale arrives a week after BP unveiled its inaugural woman CEO, Meg O'Neill, who will assume leadership in April 2026.

Her surprise appointment occurred only three months after BP named a new chairman, Albert Manifold.

And she was handed the top job less than two years after Murray Auchincloss took over from Bernard Looney as CEO.

Ongoing Business Simplification

This latest deal is the most recent in a line of sales by the company, which have included offloading its US onshore wind energy business and its Dutch mobility and convenience arm.

Interim chief executive Carol Howle commented the sale is a "excellent result for all parties involved".

"We are reducing complexity, concentrating our refining and marketing on our core integrated operations, and speeding up the execution of our strategy," she stated.