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BP has banked a US$6 billion (£4.4 billion) sum from the completed sale of a majority stake in its lubricants business, Castrol, money it will put towards further debt reduction.
The buyer is US investment firm Stonepeak, which agreed in December 2025 to take a 65 per cent holding in Castrol.
BP will retain the remaining 35 per cent through a new joint venture.
The oil giant said the net proceeds from the deal would bolster its balance sheet as it continues to pay down debts.
Those debts stood at $13.9 billion (£10.2 billion) at the end of September, according to BP’s third-quarter update last week.
Stonepeak, which is based in New York, has named Shell chief executive Ben van Beurden as chairman of Castrol’s board following the deal.
Castrol employs more than 6,000 staff worldwide and is headquartered in the UK.
It provides lubricants to motorists as well as commercial vehicles and industrial sectors such as manufacturing.
Meg O’Neill, chief executive of BP, said: “This deal brings meaningful cash proceeds to BP today while retaining a valuable stake in Castrol’s future growth.
“Castrol’s deep expertise and innovation span everything from advanced mobility solutions to data centre cooling.
“It will now have greater independence to accelerate its next phase of delivery.”
Castrol chief executive Michelle Jou added: “Castrol begins the next part of its journey from a position of real strength, with trusted brands, strong customer relationships, talented colleagues and a clear strategy for growth.”
The disposal is part of a wider plan by BP to simplify the group, strip out costs and pay down debts by selling off parts of the business and assets.
Ms O’Neill, who took on the top job in April, is set to outline her long-awaited strategy for the group in December.
BP reported bumper third-quarter results last week, amid soaring crude prices driven by the Iran war.
Underlying replacement cost profits – its preferred measure of earnings – nearly quadrupled to 8.46 billion US dollars (£6.31 billion) in the three months to September 30, up from $2.21 billion (£1.65 billion) a year ago.
