BP Sells Majority Stake in Castrol to US Firm

(MENAFN) British energy giant BP announced Wednesday that it has finalized an agreement to divest its 65% ownership in Castrol to US-based Stonepeak for $10.1 billion.

"The transaction represents a significant milestone in bp’s commitment to accelerate its strategy, including simplifying the portfolio, strengthening the balance sheet, and focusing the downstream on its leading integrated businesses," the company declared in its statement.

BP expects approximately $6 billion in net proceeds from the sale, which includes around $800 million allocated for the pre-payment of future dividend income tied to its remaining 35% stake, along with other adjustments.

The company noted that this deal forms part of its previously announced $20 billion divestment initiative, raising the total of completed and disclosed divestment gains to nearly $11 billion.

All profits from the transaction will be directed toward reducing net debt, supporting BP’s target of lowering debt to between $14–$18 billion by the end of 2027.

"The transaction allows us to realise value for our shareholders, generating significant proceeds while continuing to benefit from Castrol’s strong growth momentum. And with this, we have now completed or announced over half of our targeted $20 billion divestment programme, with proceeds to significantly strengthen bp’s balance sheet," said BP Interim CEO Carol Howle.

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