BP has completed 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 transfers 65 percent of Castrol to Stonepeak. Castrol manufactures 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 cut debt and reinforce its core operations.
BP retains a 35 percent stake in Castrol. The group first gained control of the brand in 2000. BP described the sale as a key milestone. Executives aim to streamline the business and remove costs. The transaction forms part of a wider overhaul.
Divestments Drive Corporate Reset
BP announced a major asset sale program in February. The company targets disposals worth 20 billion dollars. Management wants to refocus on oil and gas activities. BP also seeks to strengthen its balance sheet. The company says it has moved beyond the halfway point. Earlier transactions supported that progress.
BP has also revised its energy priorities. The group reduces spending on renewable projects. Some investors expressed frustration with past performance. Profits and the share price trailed rivals. BP now emphasizes traditional energy production.
Sector Follows Return to Oil and Gas
Other energy majors show similar behavior. Shell has slowed its green investment plans. Norwegian company Equinor has taken comparable action. Political messaging has influenced corporate decisions. US President Donald Trump promoted expanded drilling. His stance encouraged renewed fossil fuel investment.
Leadership Changes Add Context
The Castrol deal follows recent leadership changes. BP appointed its first female chief executive. Meg O’Neill will assume the role in April 2026. The decision surprised market watchers. BP had appointed a new chairman shortly before. Albert Manifold recently took that position. O’Neill steps in less than two years after the last transition. Murray Auchincloss succeeded Bernard Looney during that period.
Investors Welcome the Deal
BP continues to sell non core businesses. The company exited its US onshore wind operations. It also sold its Dutch mobility and convenience unit. Interim chief executive Carol Howle welcomed the agreement. She said the sale benefits all stakeholders. BP reduces complexity and accelerates its strategy.
Market reaction proved mixed during the session. Russ Mould of AJ Bell praised the transaction. He said the proceeds would ease the debt burden. The deal advances the divestment target for 2027. BP shares rose at the open. Most gains faded later in the day.
