Global energy giant BP has agreed to sell a majority stake in its renowned lubricant brand, Castrol, to US-based investment firm Stonepeak in a deal worth $6 billion (approximately GH₵81.6 billion, using current exchange rates).

The transaction, announced on Wednesday, sees Stonepeak acquiring a 65% stake in Castrol, which produces lubricants for a wide range of vehicles and industrial applications. BP will retain a 35% ownership in the brand, which it initially took full control of in 2000.

According to BP, the sale is a significant step in its ongoing strategy to streamline operations and reduce its substantial debt. The $6 billion in cash proceeds will be directed towards debt reduction and bolstering the company’s core oil and gas business.

“This is a very good outcome for all stakeholders,” stated Carol Howle, BP’s Interim Chief Executive. “We are reducing complexity, focusing the downstream on our leading integrated businesses, and accelerating delivery of our plan.”

The move comes as BP aims to offload $20 billion (£15 billion) in assets by 2027, a target the company says it is now more than halfway towards achieving. It also signals a shift in BP’s energy strategy, moving away from large-scale investments in renewable energy.

This strategic realignment follows mounting pressure from investors concerned about the company’s financial performance compared to its peers. Similar decisions have been observed at other major energy firms like Shell and Equinor, who have also scaled back their green energy ambitions. The influence of calls for increased fossil fuel investment, such as former US President Donald Trump’s “drill baby drill” mantra, is also evident.

The Castrol deal follows BP’s recent divestment of its US onshore wind energy business and its Dutch mobility and convenience operations. The announcement also arrives shortly after BP appointed Meg O’Neill as its first female Chief Executive, set to assume the role in April 2026.

Russ Mould, Investment Director at AJ Bell, described the deal as “an early Christmas present” for BP shareholders. “The significant proceeds from the transaction will allow BP to make a decent dent in its onerous borrowings pile. It also means it is well on the way to achieving its goal of $20 billion worth of divestments by 2027,” he explained.

While BP shares initially saw a boost following the news, gains were later tempered, reflecting market reaction to the broader strategic shift.

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