BP sells Castrol stake to Stonepeak for US$6bn

December 25, 2025

BP has agreed to sell a majority stake in its motor oil business, Castrol, in a US$6bn (£4.4bn) deal with US investment firm Stonepeak, as the energy giant accelerates efforts to cut debt and refocus on its core oil and gas operations.

Under the agreement, BP will sell a 65% stake in Castrol to New York-based Stonepeak, valuing the lubricants business at US$10.1bn (£7.5bn). BP will retain a 35% holding in the unit, which it has owned since 2000.

The London-listed firm said the transaction represents a “milestone” in its wider strategy to streamline operations, reduce costs and strengthen its balance sheet. Proceeds from the sale will be used primarily to pay down debt.

BP sells Castrol stake to Stonepeak for $6bn

BP announced earlier this year that it plans to divest around US$20bn (£15bn) of assets, shifting focus back to crude oil and gas after years of heavy investment in renewable energy. Following this deal and previous disposals, the company says it is now more than halfway towards meeting that target.

The strategic pivot comes amid growing investor pressure, with some shareholders arguing BP’s emphasis on green energy had weighed on profits and share price performance relative to rivals. Shell and Norway’s Equinor have also scaled back renewable investment plans, while a renewed political push in the United States to expand fossil fuel production has reinforced the shift across the sector.

The Castrol sale follows a series of recent disposals by BP, including its US onshore wind energy business and its Dutch mobility and convenience arm. It also comes just a week after the company announced the appointment of its first female chief executive, Meg O’Neill, who is due to take over in April 2026.

Interim chief executive Carol Howle described the transaction as a strong outcome, saying BP is “reducing complexity, focusing the downstream on our leading integrated businesses, and accelerating delivery of our plan”.

Market analysts welcomed the move. Russ Mould, investment director at AJ Bell, said the deal would allow BP to make “a decent dent” in its debt and bring it closer to its divestment target of US$20bn by 2027.