BP is in advanced discussions with investment firm Stonepeak regarding the potential sale of its lubricants business Castrol, a move aligned with BP’s target to divest approximately $20bn by 2027, according to a report by Reuters citing people familiar with the matter.
The sale process for Castrol began earlier this year when BP initiated a strategic review of the unit. In September, bids were submitted by both Stonepeak and One Rock, though it remains unclear whether discussions with One Rock or other parties continue. Deal value expectations currently sit at around $8bn, according to analysts.
The potential divestment reflects BP’s broader pivot away from renewable energy, with a focus on streamlining operations and improving the firm’s profitability. In August, the company launched a review to understand how it can better develop and monetise its oil and gas production assets.
Stonepeak has around $80bn assets under management, with investments in energy, digital infrastructure, transport and logistics.
