BP has completed a six billion dollar deal. 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. The brand produces 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 concentrate on core operations.
BP retains a 35 percent stake in Castrol. The group first acquired the brand in 2000. Executives called the deal a strategic milestone. BP wants to simplify operations and reduce costs. The sale supports a wider corporate transformation.
Divestment Strategy Gains Traction
BP announced a large-scale asset sale program in February. The company aims to divest assets worth 20 billion dollars. Management wants a sharper focus on oil and gas production. BP also plans to strengthen its balance sheet. The company says it has passed the halfway mark. Previous sales helped accelerate this progress.
BP has revised its long-term energy strategy. The group reduces spending on renewable energy projects. Some investors demanded change after weak performance. Profits and the share price lagged behind competitors. BP now prioritizes conventional energy activities.
Industry Trends Influence Corporate Strategy
Other energy majors are making similar adjustments. Shell has slowed its green investment plans. Norwegian firm Equinor has followed a comparable path. Political messaging has shaped company decisions. US President Donald Trump promoted expanded drilling. That stance encouraged renewed fossil fuel investment.
Leadership Changes Add Context
The Castrol sale follows recent leadership shifts. BP appointed its first female chief executive. Meg O’Neill will take over in April 2026. The appointment surprised many market observers. BP had named a new chairman months earlier. Albert Manifold recently assumed that role. O’Neill steps in less than two years after the previous transition. Murray Auchincloss replaced Bernard Looney during that period.
Investors Weigh the Impact
BP continues to divest non-core businesses. The company exited its US onshore wind operations. It also sold its Dutch mobility and convenience arm. Interim chief executive Carol Howle welcomed the deal. She said the sale benefits all stakeholders. BP reduces complexity and accelerates the delivery of its plan.
Market reaction remained cautious. Russ Mould of AJ Bell praised the transaction. He said the proceeds would ease borrowing pressures. The sale advances the divestment target for 2027. BP shares rose early on Wednesday. Most gains faded later in the session.
