British oil giant BP said Wednesday it has agreed to sell a majority stake in its Castrol lubricants business to US investment firm Stonepeak, as it seeks to cut debt.
The sale of BP’s 65 per cent stake will net it around $6 billion, the company said in a statement.
The deal, which values Castrol at $10.1 billion, is expected to be completed by the end of 2026.
Castrol will be owned by a joint venture, with BP retaining a minority stake.
“The sale marks an important milestone in the ongoing delivery of our reset strategy,” said interim chief executive Carol Howle.
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To help turn around years of lagging performance, BP plans to divest $20 billion of assets by the end of 2027 as it pivots back to its more profitable oil and gas business and slashes clean energy investment.
“We have now completed or announced over half of our targeted $20 billion divestment programme, with proceeds to significantly strengthen BP’s balance sheet,” Howle said.
BP extended its shakeup last week as it appointed energy industry veteran Meg O’Neill to become chief executive from April, replacing Murray Auchincloss.
American national O’Neill joins BP from her position as chief executive of Australian group Woodside Energy.
AFP