BP Nears Major Sale of Castrol Stake to Stonepeak

BP is close to selling a majority stake in its Castrol lubricants unit to investment firm Stonepeak for $10 billion. BP will retain a 35% stake after the sale, and is set to receive $6 billion. The transaction is part of BP's $20 billion divestment strategy.

BP is on the cusp of finalizing a deal to sell the majority stake in its Castrol lubricants unit to the investment firm Stonepeak, as reported by the Wall Street Journal on Tuesday. The transaction, valued at $10 billion including debt, represents a significant shift in BP's portfolio.

The oil giant is expected to receive approximately $6 billion in proceeds from this sale of a 65% stake to Stonepeak. The announcement is anticipated as early as Wednesday, according to sources familiar with the situation. Despite multiple requests, both BP and Stonepeak have remained tight-lipped on the matter.

This move aligns with BP's aggressive divestment goal of $20 billion, previously reported by Reuters last November as BP was engaged in talks with Stonepeak. The sale marks a pivotal step in BP's broader strategic realignment.