bp reshapes portfolio with $10.1 billion Castrol sale, accelerating energy strategy shift

bp has agreed to sell a majority controlling interest in its global lubricants subsidiary Castrol to Stonepeak in a transaction valuing the business at approximately $10.1 billion, marking one of the supermajor’s most significant portfolio shifts in recent years. bp will retain a 35% share in Castrol following closing, maintaining strategic linkage to the lubricants business while freeing capital for its energy transition and upstream priorities. 

The agreement transfers control of Castrol—one of the world’s largest lubricants brands—to infrastructure and real-assets investor Stonepeak. Canada Pension Plan Investment Board will participate through an indirect investment of up to $1.05 billion.

The sale comes as bp seeks to optimize its global asset base and redeploy capital across core growth areas, including LNG, upstream oil and gas projects, and low-carbon investments outlined in its multiyear spending program. Retaining a minority position allows bp to continue leveraging Castrol’s global supply chain while reducing operational exposure.

Founded 126 years ago, Castrol supplies engine oils, greases and industrial fluids across 150 countries and operates through 20 blending plants and more than 100 partner facilities. Its brand remains widely embedded across automotive, industrial and aerospace applications.

The transaction is expected to close by end-2026, subject to regulatory approvals.