bp has completed the sale of a 65 percent stake in its Castrol lubricants business to US-based investment firm Stonepeak, generating $6 billion in after-tax proceeds, the company said on November 2.
bp said it intends to use the proceeds to further reduce its financial obligations as part of its priority to strengthen its balance sheet.
“Castrol will now operate as a standalone company with its own management, governance and strategic priorities, and bp will retain a 35% stake,” said the company.
The transaction also covers Castrol's minority interests in several markets, including India, where it holds a 49 percent interest, Vietnam (35 percent), Saudi Arabia (50 percent) and Thailand (40 percent), as well as interests in other jurisdictions.
bp said the total after-tax proceeds of $6 billion include approximately $800 million related to the prepayment of expected dividend income from its retained 35 percent stake over the short to medium term, alongside customary transaction adjustments.
The company will account for its remaining interest in Castrol as an equity-accounted investment. However, bp does not expect to recognize earnings or receive dividends from the stake in the short to medium term, as Stonepeak will have distribution preference.
Following a two-year lock-up period, bp will have the option to sell its remaining 35 percent interest in Castrol.
According to bp, the non-controlling interests in Castrol generated an average of approximately $100 million in annual net income between 2019 and 2025.
As of September 30, 2026, Castrol's non-controlling interests were recorded on bp's balance sheet at approximately $450 million, measured at historical cost. Castrol's debt-like obligations on the balance sheet stood at around $300 million.
Castrol is a UK-headquartered global lubricants business with more than 6,000 employees and operations spanning over 150 countries. Its products serve the automotive, marine, industrial and energy sectors. The company has more than 127 years of operating history.
Stonepeak is an alternative investment firm specializing in infrastructure, with approximately $98 billion in assets under management. Its investment portfolio spans digital infrastructure, energy and energy transition, transport and logistics, and real estate.
