NEW DELHI: BP on Wednesday announced the sale of a 65% shareholding in Castrol to US-based Stonepeak at an enterprise value of $10.1 billion. In a press note, the company said the transaction is expected to result in total net proceeds of approximately $6.0 billion for BP. This includes around $0.8 billion from the prepayment of future dividend income over the short to medium term on BP’s retained 35% stake, along with other adjustments.
A significant portion of Castrol’s JV minority interests relates to its shareholding in the publicly listed Castrol India Limited. Upon completion of the transaction, a new joint venture will be incorporated with Stonepeak holding a 65% stake and BP retaining the remaining 35%.
The implied total equity value of Castrol is $8.0 billion, after deducting joint venture (JV) minority interests totalling $1.8 billion and other debt-like obligations of approximately $0.3 billion, subject to customary adjustments.
Following a two-year lock-up period, BP will have the option to sell its remaining 35% stake in Castrol. The transaction is expected to be completed by the end of 2026, subject to regulatory approvals.
“Today’s announcement is a very good outcome for all stakeholders. We concluded a thorough strategic review of Castrol that generated extensive interest and resulted in the sale of a majority interest to Stonepeak. The transaction allows us to realise value for our shareholders, generating significant proceeds while continuing to benefit from Castrol’s strong growth momentum. With this, we have now completed or announced over half of our targeted $20 billion divestment programme, with proceeds set to significantly strengthen BP’s balance sheet,” said Carol Howle, Interim CEO of BP.
Anthony Borreca, Senior Managing Director and Co-Head of Energy at Stonepeak, said, “Lubricants are mission-critical products, essential to the safe and efficient functioning of virtually every vehicle, machine, and industrial process in the world. Castrol’s 126-year heritage has created a leading market position, an iconic brand, and a portfolio of differentiated products that deliver meaningful value to customers. We are excited to work alongside Castrol’s talented employees, with BP’s continued guidance as a minority interest holder, to support the business’s continued growth.”
The sale forms part of BP’s previously announced $20 billion divestment programme and brings completed and announced divestment proceeds to around $11.0 billion to date. All proceeds from the transaction will be used to reduce net debt towards BP’s target range of $14–18 billion by the end of 2027. As of the end of the third quarter of 2025, BP’s net debt stood at $26.1 billion.
BP has guided divestment proceeds for 2025 to exceed $4 billion, of which $1.7 billion had been received as of the third-quarter 2025 results, with the remainder expected by the end of 2025. The transaction includes minority interests in Castrol, primarily in India (49%), Vietnam (35%), Saudi Arabia (50%), Thailand (40%), and other jurisdictions.