BP has completed a six billion dollar transaction. The company sells a majority stake in its Castrol motor oil unit. US investment firm Stonepeak takes 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 reduce debt and tighten strategic focus.
BP keeps a 35 percent stake in Castrol. The company first gained control of the brand in 2000. Executives described the deal as a major milestone. BP aims to simplify operations and remove costs. The sale forms part of a wider corporate reset.
Divestment Programme Builds Pace
BP announced a broad asset sale plan in February. The company targets divestments worth 20 billion dollars. Management wants a clearer focus on oil and gas. BP also seeks to strengthen its balance sheet. The company says progress now exceeds the halfway point. Earlier sales helped drive that advance.
BP has reshaped its long term energy strategy. The group cuts investment in renewable energy projects. Some investors demanded changes after weak performance. Profits and the share price lagged industry rivals. BP now concentrates on conventional energy production.
Energy Companies Follow a Similar Route
Other major producers show comparable shifts. Shell has scaled back green investment ambitions. Norwegian firm Equinor has taken similar steps. Political signals have influenced corporate strategies. US President Donald Trump promoted expanded drilling. That message encouraged renewed fossil fuel investment.
Leadership Changes Add Context
The Castrol sale follows recent leadership developments. BP appointed its first female chief executive. Meg O’Neill will take office in April 2026. The appointment surprised many market watchers. 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 change. Murray Auchincloss replaced Bernard Looney during that period.
Investors Assess the Impact
BP continues to sell 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 transaction. She said the sale benefits all stakeholders. BP reduces complexity and accelerates delivery of its plan.
Market reaction remained mixed through the session. Russ Mould of AJ Bell praised the deal. He said the proceeds would ease borrowing pressure. The sale advances the divestment target for 2027. BP shares rose early on Wednesday. Most gains faded later in the day.
