British energy giant BP has completed the sale of a 65% stake in its Castrol lubricants business to US investment firm Stonepeak, generating approximately $6 billion in after-tax proceeds as part of its broader strategy to reduce debt and streamline operations.
The transaction, finalised on November 2, 2026, follows an agreement reached in December 2025 that valued Castrol at approximately $10.1 billion. Under the new ownership structure, Stonepeak will hold a controlling 65% interest, while BP retains a 35% minority stake in a joint venture, allowing the energy company to maintain exposure to Castrol's future growth.
BP confirmed that proceeds from the transaction will be directed towards strengthening its balance sheet and reducing financial obligations. The company recently reported that its net debt had declined to approximately $13.9 billion, reaching its debt reduction target a year ahead of schedule.
BP Chief Executive Meg O'Neill described the completion as an important step in the company's financial restructuring, highlighting the immediate cash benefits while maintaining a long-term investment in Castrol.
Following the acquisition, Castrol has appointed former Shell CEO Ben van Beurden as Chairman of its newly established board. The leadership structure will include representatives from Stonepeak, BP, independent directors, and CPP Investments, which is participating as an indirect minority investor.
The new ownership arrangement is expected to provide Castrol with greater financial and operational flexibility, supporting expansion across automotive, commercial, and industrial markets.
For BP, the divestment represents a major milestone in its portfolio simplification strategy, enabling the company to concentrate resources on its core energy operations while improving financial resilience and long-term shareholder value.
