bp has agreed to sell a 65 per cent shareholding in Castrol to Stonepeak at an enterprise value of about USD 10 billion, marking a key milestone in bp’s ongoing portfolio reset and divestment programme.

The transaction is expected to generate net proceeds of around USD 6 billion for bp, including accelerated dividend payments, all of which will be used to reduce net debt. The deal accelerates bp’s strategy to simplify its portfolio, strengthen its balance sheet and sharpen its focus on downstream businesses.

Following completion, a new joint venture will be formed with 65 per cent ownership by Stonepeak and 35 per cent retained by bp. The retained stake provides bp with exposure to Castrol’s growth plan, while preserving optionality to realise further value after a two-year lock-up period.

The sale forms part of bp’s previously announced USD 20 billion divestment programme and is expected to be completed by the end of 2026, subject to regulatory approvals.