BAKU, Azerbaijan, November 2. 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.