• bp has reached an agreement to sell a 65% shareholding in Castrol at an enterprise value of $10 billion.
• Total net proceeds to bp of c.$6 billion, including accelerated dividend payments, will be fully utilised to reduce net debt.
• Transaction accelerates delivery of bp’s reset strategy, will significantly strengthen its balance sheet, and advances strategy to focus the downstream.
• bp’s retained stake in a new joint venture provides exposure to Castrol’s growth plan while retaining optionality to realise further value in the future.

bp agrees sale of 65% stake in Castrol to Stonepeak

Following a comprehensive strategic review of Castrol, bp has reached an agreement to sell a 65% shareholding in Castrol to Stonepeak, at an enterprise value of $10.1 billion. This represents an implied EV / LTM EBITDA of around 8.6x, reflecting the strength of the business and its future growth potential.

The transaction represents a significant milestone in bp’s commitment to accelerate its strategy, including simplifying the portfolio, strengthening the balance sheet, and focusing the downstream on its leading integrated businesses.

Transaction highlights

The transaction is expected to result in total net proceeds to bp of approximately $6.0 billion. This includes around $0.8 billion for the pre-payment of future dividend income over the short to medium term on bp’s retained 35% stake and other adjustments.

The implied total equity value of Castrol is $8.0 billion, after deducting JV minority interests totaling $1.8 billion and other debt-like obligations of around $0.3 billion, subject to customary adjustments. A significant proportion of Castrol JV minority interests relate to the shareholding in the publicly listed Castrol India Limited.

Joint venture structure

Upon completion of the transaction, a new joint venture will be incorporated comprising a 65% Stonepeak and 35% bp ownership. bp’s retained stake provides exposure to Castrol’s growth plan over the coming years, which builds on a strong track record of nine consecutive quarters of year-on-year earnings growth.

Following a two-year lock-up period, bp will have optionality to sell its remaining 35% stake in Castrol.

“Today’s announcement is a very good outcome for all stakeholders. We concluded a thorough strategic review of Castrol, that generated extensive interest and resulted in the sale of a majority interest to Stonepeak. And with this, we have now completed or announced over half of our targeted $20bn divestment programme, with proceeds to significantly strengthen bp’s balance sheet.”

— Carol Howle, Interim CEO, bp

The transaction is expected to complete by the end of 2026, subject to regulatory approvals.

Leadership commentary

“The transaction allows us to realise value for our shareholders, generating significant proceeds while continuing to benefit from Castrol’s strong growth momentum. The sale marks an important milestone in the ongoing delivery of our reset strategy.”

— Carol Howle, Interim CEO, bp

“Lubricants are a mission-critical product essential to the safe and efficient functioning of virtually every vehicle, machine, and industrial process in the world. Castrol’s 126-year heritage has created a leading market position and an iconic brand.”

— Anthony Borreca, Senior Managing Director and Co-Head of Energy, Stonepeak

Strategic impact

The sale forms part of bp’s previously announced $20 billion divestment programme and brings completed and announced divestment proceeds to approximately $11.0 billion to date.

All proceeds from the transaction will be allocated to reducing net debt towards bp’s target range of $14–18 billion by the end of 2027. As of the end of Q3 2025, bp’s net debt stood at $26.1 billion.

• High-grade the portfolio and reduce complexity
• Strengthen the balance sheet and optimise costs
• Invest with discipline to maximise cash flow and returns

Through these actions, bp continues to accelerate its strategy to become a simpler, leaner, and more profitable company.

Notes to editors

• The transaction includes minority interests in Castrol, principally in India, Vietnam, Saudi Arabia, Thailand, and other jurisdictions.
• Following completion, bp expects to treat its retained stake as an equity-accounted investment.
• Castrol non-controlling interests have averaged around $100 million per annum in net income since 2019.
• Since 2023, Castrol’s underlying effective tax rate has averaged around 30%.
• bp will appoint two board members to the new joint venture upon closing.

About bp

bp is an integrated energy company focused on delivering energy solutions while creating value for shareholders. For more information, visit bp.com.

About Stonepeak

Stonepeak is a leading alternative investment firm specialising in infrastructure and real assets, with approximately $80 billion in assets under management. For more information, visit stonepeak.com.

Contacts

bp Press Office, London: bppress@bp.com

Cautionary statement

This release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. Actual results may differ materially due to a variety of factors, including risks described in bp’s most recent Annual Report and Form 20-F.