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BP has struck a $6bn deal to sell a majority stake in its motor oil division Castrol to a American investment group.
The Specifics Behind the Major Deal
The oil giant has sold a 65% stake in Castrol, which makes lubricants for automobiles, bikes, and commercial machinery, to the New York firm Stonepeak.
This transaction valued Castrol at $10.1 billion, with BP receiving $6 billion cash, which it will use to pay down debts and allow it to concentrate on its primary operations.
BP will retain a 35% stake in Castrol, which it first took control of in the year 2000.
A Strategic Pivot and Asset Sales
The London-based oil major said the sale represents a "milestone" in its plans to restructure its business and strip out expenses.
BP in February announced plans to sell off $20bn worth of assets in a move to focus on its core crude oil and gas business and strengthen its financial position.
Following today's deal and previous announcements, the company states it is more than halfway to meeting that goal.
It is also changing its approach away from investment in green energy and refocusing on its focus on oil and gas after calls by some investors who were frustrated that its profits and share price had lagged behind competitors.
Sector Trends and Leadership Changes
Competitors like Shell and Norwegian company Equinor have also scaled back plans to put money into green energy.
The Castrol sale comes a week after BP unveiled its inaugural woman CEO, Meg O'Neill, who will take the helm in April 2026.
Her surprise appointment occurred only three months after BP appointed a new board chair, Albert Manifold.
And she was given the CEO role less than two years after Murray Auchincloss succeeded Bernard Looney as CEO.
Continuing Portfolio Streamlining
This recent transaction is the most recent in a line of sales by the firm, which included selling its US onshore wind energy business and its Dutch mobility and convenience arm.
Interim chief executive Carol Howle said the sale represents a "very good outcome for all stakeholders".
"We are reducing complexity, focusing the downstream on our leading integrated businesses, and accelerating delivery of our strategy," she stated.
