BP has agreed a six billion dollar deal. The company sells a majority stake in its motor oil business Castrol. US investment firm Stonepeak buys the holding. The buyer operates from New York. BP sells 65 percent of Castrol. The brand produces lubricants for cars, motorcycles, and industrial vehicles. The agreement values Castrol at 10.1 billion dollars. BP receives six billion dollars in cash. The company plans to reduce debt and sharpen its business focus.
BP keeps a 35 percent stake in Castrol. The company first took control of Castrol in 2000. BP called the sale a major milestone. Management wants to simplify operations and cut costs. The group continues a wider restructuring program.
Asset Sales Support Strategic Shift
BP announced large asset sales in February. The company targets divestments worth 20 billion dollars. Management wants to focus on oil and gas production. BP also aims to strengthen its balance sheet. The company says it has passed the halfway mark. Earlier disposals helped reach that point.
BP has also adjusted its energy strategy. The group reduces investment in renewable energy projects. Some investors demanded change after weak performance. Profits and the share price lagged competitors. BP now prioritizes traditional energy activities.
Industry Moves Back Toward Fossil Fuels
Other energy companies follow similar paths. Shell has scaled back green investment plans. Norwegian firm Equinor has taken comparable steps. Political pressure has influenced the sector. US President Donald Trump urged expanded drilling. His stance encouraged renewed fossil fuel investment.
Leadership Changes Frame the Deal
The Castrol sale follows major leadership news. BP named its first female chief executive. Meg O’Neill will take charge in April 2026. The appointment surprised many observers. BP had named a new chairman only months earlier. Albert Manifold assumed that role recently. O’Neill takes over less than two years after the last transition. Murray Auchincloss replaced Bernard Looney during that period.
Ongoing Disposals and Market Reaction
BP continues a series of divestments. The company sold its US onshore wind business. It also exited its Dutch mobility and convenience arm. Interim chief executive Carol Howle praised the outcome. She said the deal benefits all stakeholders. BP reduces complexity and accelerates delivery of its plan.
Investors reacted positively at first. Russ Mould of AJ Bell welcomed the transaction. He said proceeds would reduce heavy borrowing. The deal advances the 20 billion dollar divestment goal. BP shares rose early on Wednesday. The gains faded later in the session.
