London, 24 December 2025 — In a major strategic move, BP has announced the sale of a 65% shareholding in Castrol to global investment firm Stonepeak, valuing the business at an enterprise value of $10 billion. The deal marks a significant milestone in BP’s ongoing effort to streamline its operations, reduce debt, and focus on core downstream businesses.
Under the agreement, BP will receive approximately $6 billion in net proceeds, which includes accelerated dividend payments from its retained stake. The funds will be fully utilized to reduce the company’s net debt, strengthening BP’s financial position and advancing its long-term reset strategy.
Deal Structure and Financial Highlights
The transaction values Castrol at a multiple of around 8.6x EV/LTM EBITDA, reflecting both the company’s robust financial performance and its long-term growth potential.
Key financial highlights include:
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Enterprise value: $10.1 billion
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Net proceeds to BP: Approximately $6 billion
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BP’s retained ownership: 35% in a newly formed joint venture
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Stonepeak’s ownership: 65% controlling interest
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Expected completion: By the end of 2026, subject to regulatory approvals
Following completion, a new joint venture will be formed between BP and Stonepeak, with BP retaining exposure to Castrol’s growth while maintaining the flexibility to sell its remaining stake after a two-year lock-up period.
BP’s retained interest will allow it to continue benefiting from Castrol’s strong market momentum, which includes nine consecutive quarters of year-on-year earnings growth.
Leadership Comments
Carol Howle, Interim CEO at BP, described the deal as a pivotal moment for the company’s transformation strategy:
“Today’s announcement is a very good outcome for all stakeholders. We concluded a thorough strategic review of Castrol that generated extensive interest and resulted in the sale of a majority interest to Stonepeak.
This transaction allows us to realise significant value for our shareholders, simplify our portfolio, and strengthen our balance sheet. It marks an important milestone in the delivery of our reset strategy — reducing complexity, focusing on our leading integrated businesses, and accelerating value creation for shareholders.”
Anthony Borreca, Senior Managing Director and Co-Head of Energy at Stonepeak, expressed confidence in Castrol’s potential:
“Lubricants are a mission-critical product essential to the efficient functioning of vehicles, machinery, and industries worldwide. Castrol’s 126-year legacy, strong brand equity, and innovation-driven product portfolio have established it as a market leader.
We’re excited to work alongside Castrol’s talented team and BP as we support the next phase of growth for this iconic business.”
Strategic Impact and Future Outlook
The sale of the Castrol stake is part of BP’s $20 billion divestment programme, with total completed and announced divestments now reaching $11 billion. All proceeds from the transaction will go toward reducing BP’s net debt, which stood at $26.1 billion at the end of Q3 2025. The company aims to reduce net debt to between $14 billion and $18 billion by 2027.
This move aligns with BP’s broader objective to:
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Streamline its global portfolio and reduce operational complexity
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Strengthen its balance sheet and optimize capital allocation
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Drive disciplined investment to maximize shareholder returns
By maintaining a strategic minority interest, BP will continue to participate in Castrol’s growth and innovation journey, particularly in next-generation lubricants and digital mobility solutions.
A Step Toward a Leaner, Stronger BP
The divestment marks one of the most significant transactions in BP’s recent history and underlines the company’s commitment to becoming a simpler, leaner, and more profitable energy leader.
With this sale, BP reinforces its focus on core integrated businesses, sustainable cash flow generation, and long-term value creation — all while strengthening its balance sheet to support future growth.
Ruchi Kumar is the associate editor at Entrepreneur News Network and TVW News India, where she leads editorial strategy, brand storytelling, and startup ecosystem coverage. With a strong focus on innovation, business, and marketing insights, he curates impactful narratives that spotlight India’s evolving entrepreneurial landscape.