By Fatma Younis
BP has completed the sale of a 65% stake in its lubricants business Castrol to US investment firm Stonepeak for $6bn (£4.4bn), securing funds to reduce its debt.
Deal details
Stonepeak, based in New York, agreed to the purchase in December 2025. BP retains a 35% stake through a new joint venture. Castrol employs over 6,000 staff worldwide and is headquartered in the UK.
Debt reduction
BP said the net proceeds will bolster its balance sheet as it continues to pay down debts, which stood at $13.9bn (£10.2bn) at the end of September.
Leadership changes
Shell chief executive Ben van Beurden has been named chairman of Castrol's board following the deal.
Executive comments
BP chief executive Meg O'Neill said the deal brings meaningful cash proceeds while retaining a valuable stake in Castrol's future growth. Castrol chief executive Michelle Jou said the business begins its next phase from a position of strength.
Strategic context
The disposal is part of BP's wider plan to simplify the group, strip out costs and pay down debts by selling assets. O'Neill, who took the top job in April, is set to outline her long-term strategy in December.
Financial performance
BP reported strong third-quarter results last week, with underlying replacement cost profits nearly quadrupling to $8.46bn (£6.31bn) in the three months to September 30, up from $2.21bn a year earlier, amid soaring crude prices driven by the Iran war.
