BP just cashed out most of its iconic motor oil brand. The oil giant sold a 65 percent stake in Castrol to the American investment firm Stonepeak for six billion dollars, valuing the whole lubricants division at over ten billion. BP will keep a 35 percent piece of the company it bought back in 2000. They called the move a milestone in their bigger plan to simplify operations and cut costs.
The company plans to use the cash to pay down debt and sharpen its focus on its core oil and gas business. This sale pushes them past the halfway mark on a goal to sell twenty billion dollars in assets. The strategy represents a clear pivot back toward fossil fuels, echoing moves by rivals like Shell and Equinor to scale back green energy investments after investor pressure to boost profits and share price. The deal also comes just a week after BP surprised everyone by naming Meg O'Neill as its next chief executive, set to start in 2026.
An interim CEO, Carol Howle, stated the sale was a good outcome that reduces complexity. Market analysts saw it as an early gift for shareholders, helping tackle BP's debt and advance its divestment target. The news gave the company's shares a brief bump in morning trading before they settled back down.
The company plans to use the cash to pay down debt and sharpen its focus on its core oil and gas business. This sale pushes them past the halfway mark on a goal to sell twenty billion dollars in assets. The strategy represents a clear pivot back toward fossil fuels, echoing moves by rivals like Shell and Equinor to scale back green energy investments after investor pressure to boost profits and share price. The deal also comes just a week after BP surprised everyone by naming Meg O'Neill as its next chief executive, set to start in 2026.
An interim CEO, Carol Howle, stated the sale was a good outcome that reduces complexity. Market analysts saw it as an early gift for shareholders, helping tackle BP's debt and advance its divestment target. The news gave the company's shares a brief bump in morning trading before they settled back down.
