BP in active talks with stonepeak over Castrol sale

BP is in active negotiations with investment firm Stonepeak over the sale of its Castrol lubricants unit, sources familiar with the matter said, as the oil major seeks to advance its $20 billion divestment goal. The sale process for the century-old lubricants business began earlier this year as part of BP’s broader strategy to focus on core oil and gas operations.

The Castrol sale has attracted multiple bidders, with Stonepeak and private equity firm One Rock reportedly submitting offers in September, though sources cautioned that no deal is guaranteed. Market analysts estimate the unit could be valued at around $8 billion. BP representatives, Stonepeak, and One Rock declined to comment.

BP, a London-listed energy giant, has pledged to streamline operations, increase profitability, and cut costs. CEO Murray Auchincloss said he expects completed or announced asset sales to total around $5 billion this year, including minority stakes in U.S. onshore pipelines. The Castrol divestment is part of a wider effort to satisfy investor pressure, including from activist hedge fund Elliott, and to reshape BP’s portfolio following the appointment of new Chair Albert Manifold.

Following the Reuters report, BP’s U.S.-listed depository receipts jumped 2% before paring back gains, reflecting market attention on the potential sale. Stonepeak, headquartered in New York, manages around $80 billion in assets and has prior experience in energy and infrastructure investments, including a 65% stake in Phillips 66’s retail fuel business in Germany and Austria.