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BP has struck a $6 billion deal to sell a controlling interest in its motor oil division Castrol to a American investment group.
Details of the Major Deal
The oil giant has sold a 65 percent share in Castrol, which produces oils for cars, motorcycles and industrial vehicles, to the New York firm Stonepeak.
This deal valued Castrol at $10.1bn, with BP receiving $6bn in cash, which it will allocate to reducing debts and enable it to concentrate on its primary operations.
BP will hold onto a 35 percent share in Castrol, which it first took control of in the year 2000.
A Strategic Pivot and Asset Sales
The UK-headquartered energy corporation said the sale represents a "key moment" in its plans to overhaul its business and reduce expenses.
BP in February announced plans to divest $20bn worth of assets in a move to prioritize its core crude oil and gas business and fortify its financial position.
After today's deal and previous announcements, the company states it is more than halfway to meeting that target.
It is also shifting its strategy from funding for green energy and renewing its focus on oil and gas following pressure from some shareholders who were frustrated that its earnings and stock value had trailed competitors.
Industry Trends and Leadership Updates
Competitors like Shell and Norwegian company Equinor have also scaled back plans to invest in green energy.
The Castrol sale arrives a week after BP announced its inaugural woman CEO, Meg O'Neill, who will assume leadership in April 2026.
Her surprise appointment came only three months after BP named a new chairman, Albert Manifold.
And she was handed the top job less than two years after Murray Auchincloss took over from Bernard Looney as chief executive.
Continuing Portfolio Streamlining
This recent transaction is the most recent in a line of sales by the company, which included selling its American wind power assets and its Dutch mobility and convenience arm.
Acting CEO Carol Howle commented the sale is a "very good outcome for all stakeholders".
"We are reducing complexity, focusing the downstream on our core integrated operations, and speeding up the execution of our strategy," she stated.
