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BP agrees to sell majority stake in Castrol to US firm Stonepeak
(MENAFN) British energy company BP announced on Wednesday that it has agreed to sell its 65% stake in Castrol to US-based investment firm 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 said in a statement.
BP expects to receive approximately $6 billion in net proceeds from the deal, which includes around $800 million representing the pre-payment of future dividend income from its remaining 35% stake and other adjustments.
The sale is part of BP’s previously outlined $20 billion divestment program, bringing total completed and disclosed divestment proceeds to roughly $11 billion. The company intends to use all proceeds to reduce net debt and aims to achieve a target range of $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.
She added, “The sale marks an important milestone in the ongoing delivery of our reset strategy. We are reducing complexity, focusing the downstream on our leading integrated businesses, and accelerating delivery of our plan. And we are doing so with increasing intensity – with a continued focus on growing cash flow and returns, and delivering value for our shareholders.”
“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 said in a statement.
BP expects to receive approximately $6 billion in net proceeds from the deal, which includes around $800 million representing the pre-payment of future dividend income from its remaining 35% stake and other adjustments.
The sale is part of BP’s previously outlined $20 billion divestment program, bringing total completed and disclosed divestment proceeds to roughly $11 billion. The company intends to use all proceeds to reduce net debt and aims to achieve a target range of $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.
She added, “The sale marks an important milestone in the ongoing delivery of our reset strategy. We are reducing complexity, focusing the downstream on our leading integrated businesses, and accelerating delivery of our plan. And we are doing so with increasing intensity – with a continued focus on growing cash flow and returns, and delivering value for our shareholders.”
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