BP Sells 65% Stake in Castrol to Stonepeak

TL;DR

BP selling 65% of Castrol to Stonepeak, shedding a major brand.

AI Summary

BP p.l.c. announced on December 24, 2025, an agreement to sell a 65% stake in its Castrol business to Stonepeak. The filing does not disclose the financial terms of this transaction.

Why It Matters

This divestment signals a strategic shift for BP, potentially allowing it to focus on core energy transition activities while unlocking value from its lubricants business.

Risk Assessment

Risk Level: medium — The sale of a significant business unit like Castrol introduces execution risk and potential impacts on future revenue streams.

Key Numbers

• 65% — Castrol Stake Sold (Percentage of Castrol business being divested by BP.)

Key Players & Entities

• BP p.l.c. (company) — Seller
• Castrol (company) — Divested Business Unit
• Stonepeak (company) — Acquirer
• December 24, 2025 (date) — Announcement Date

FAQ

Key Financial Figures

• $10 billion — o Stonepeak at an enterprise value of $10 billion   ●     
• $6 b — 0;   Total net proceeds to bp of c.$6 billion, including accelerated dividend p
• $10.1 billion — to Stonepeak, at an enterprise value of $10.1 billion.   This represents an implied EV /
• $6.0 b — tal net proceeds to bp of approximately $6.0 billion, which includes around $0.8 billi
• $0.8 billion — ely $6.0 billion, which includes around $0.8 billion for the pre-payment of future dividend
• $8.0 billion — mplied total equity value of Castrol is $8.0 billion after deducting JV minority interests t
• $1.8 b — educting JV minority interests totaling $1.8 billion, and other debt-like obligations
• $0.3 b — d other debt-like obligations of around $0.3 billion, and subject to customary adjustm
• $20b — or announced over half of our targeted $20bn divestment programme, with proceeds to
• $20 billion — le is part of bp's previously announced $20 billion divestment programme and brings complet
• $11.0 billion — d divestment proceeds to date to around $11.0 billion. All proceeds from this transaction wil
• $14 — educing net debt towards bp's target of $14-18 billion by end 2027. As of the end o
• $26.1 billion — of the end of 3Q 2025 bp's net debt was $26.1 billion. Divestment proceeds guidance for 2025
• $4 b — ment proceeds guidance for 2025 is over $4 billion, of which $1.7 billion has been r
• $1.7 billion — e for 2025 is over $4 billion, of which $1.7 billion has been received as at 3Q25 results, &

Filing Documents

• a8066m.htm (6-K) — 37KB
• 0001654954-25-014315.txt ( ) — 38KB

forward-looking statements - that is, statements related to future,

forward-looking statements - that is, statements related to future, not past events and circumstances - with respect to the financial condition, results of operations and businesses of bp and certain of the plans and objectives of bp with respect to these items. These statements are generally, but not always, identified by the use of words such as 'will', 'expects', 'is expected to', 'targets', 'aims', 'should', 'may', 'objective', 'is likely to', 'intends', 'believes', 'anticipates', 'plans', 'we see' or similar expressions. In particular, the following, among other statements, are all forward-looking in nature: expectations in relation to the completion of the transaction described including the outcome of regulatory approvals and timing; expectations in relation to total net proceeds; plans and expectations in relation to Castrol's future growth plan and bp's retained stake; and plans and expectations in relation to bp's strategy including bp's net debt and other primary targets. By their nature, forward-looking events and depend on circumstances that will or may occur in the future and are outside the control of bp. Actual results or outcomes, may differ materially from those expressed in such factors discussed under "Risk factors" in bp's most recent Annual Report and Form 20-F as filed with the US Securities and Exchange Commission and in any of our more recent public reports.   Our most recent Annual Report and Form 20-F and other period filings are available on our website at www.bp.com, or can be obtained from the SEC by calling 1-800-SEC-0330 or on its website at www.sec.gov.          

SIGNATURES

SIGNATURES     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.       BP p.l.c.   (Registrant)     Dated: 24 December 2025     /s/ Ben J. S. Mathews   ------------------------   Ben J. S. Mathews   Company Secretary

View Full Filing

View this 6-K filing on SEC EDGAR