bp has agreed to sell a 65% stake in its Castrol lubricants business to the US-based investment firm Stonepeak, valuing the business at an enterprise value of $10 billion (€8.5 billion), in a deal that marks a significant step in the energy major’s portfolio reshaping.
The transaction will see bp retain a 35% shareholding in Castrol, allowing it to continue participating in the brand’s long-term growth while bringing in a strategic partner with deep experience in infrastructure and industrial assets.
Castrol, one of the world’s best-known lubricants brands, operates in more than 150 countries and supplies products for automotive, industrial and marine applications.
For bp, the sale represents a further move to simplify its operations and unlock value from non-core assets, as the group seeks to strengthen its balance sheet and focus investment on higher-return areas, including its core oil and gas business and selected low-carbon opportunities. Proceeds from the deal are expected to support BP’s capital allocation priorities, including debt reduction and shareholder returns.
Stonepeak said the acquisition reflects its confidence in Castrol’s strong brand, global footprint and resilient cash flows.
The firm aims to support Castrol’s expansion in high-growth markets and accelerate innovation in advanced lubricants and fluids, particularly as vehicle technology evolves and demand grows for products compatible with electric and hybrid drivetrains.
The transaction remains subject to regulatory approvals and customary closing conditions. Once completed, Castrol will operate as a standalone business with its own governance structure, while maintaining commercial and technical links with bp.
The deal underscores the continued appetite from private capital for established energy-adjacent businesses with stable earnings and long-term growth potential.
bp sells stake in Castrol lubricants business
