🔗 Share this article The energy giant BP Sells Controlling Stake in Lubricants Arm Castrol for $6bn. Image Source The company that became Castrol was established in London in 1899. BP has struck a $6 billion agreement to sell a majority stake in its lubricants business Castrol to a American investment group. Details of the Transaction The energy major has sold a 65% stake in Castrol, which makes lubricants for automobiles, bikes, and commercial machinery, to New York-based Stonepeak. This transaction valued Castrol at $10.1 billion, with BP obtaining $6 billion cash, which it will use to pay down debt and enable it to focus on its core business. BP will retain a 35% stake in Castrol, which it first took control of in the year 2000. A Strategic Shift and Asset Sales The London-based oil major said the sale represents a "key moment" in its plans to restructure its business and strip out costs. BP earlier this year revealed intentions to divest $20bn worth of holdings in a move to focus on its core crude oil and gas business and fortify its financial position. After this latest agreement and previous announcements, the company says it is over half way to meeting that goal. It is also changing its approach away from funding for renewable power and renewing its focus on oil and gas after calls by some shareholders who were frustrated that its profits and share price had trailed rivals. Industry Context and Leadership Changes Competitors such as Shell and Norway's 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 unexpected selection 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 CEO. Continuing Portfolio Simplification This recent transaction is the most recent in a line of divestments by the firm, which have included selling its American wind power assets and its Dutch mobility and convenience arm. Interim chief executive Carol Howle commented the sale is a "very good outcome for all stakeholders". "We are simplifying our structure, concentrating our refining and marketing on our leading integrated businesses, and accelerating delivery of our strategy," she added.