WSJ reports that BP is close to selling its majority Castrol stakes to Stonepeak

The Wall Street Journal reported on Tuesday that BP was close to selling a majority of Castrol's shares to Stonepeak, an investment firm. This deal values BP's lubricants division at $10 billion including debt.

The report cited people familiar with this matter as saying that London-listed BP will sell a 65% share in its Castrol division to Stonepeak for approximately $6 billion.

Financial Times reported on the matter, citing sources. It also stated that BP would retain a minor stake in a joint-venture, valuing its century-old lubricants 'and engine oil business at around $10 billion.

BP and Stonepeak didn't immediately respond to our requests for comment.

In November, it was reported that BP had been in discussions with Stonepeak about selling Castrol. The energy giant is aiming to sell off assets worth $20 billion by 2027. The plan calls for selling its lubricants division to cut costs and reduce debt.

BP has a strategy of asset disposal to reduce its debt. The Castrol deal is at the heart of this plan.

Castrol began its sale earlier this year, after BP announced in February that it had reviewed the lubricants division as part of a broader shift to renewable energy. In September, Stonepeak and the private equity firm One Rock made bids to buy the unit.

Meg O'Neill, the CEO of Woodside Energy, was appointed by Exxon last week to replace Murray Auchincloss. The company is working hard to improve its share performance and profitability, which has been lagging behind for many years.

BP began a review in August of?how to best develop and monetise the oil and gas assets of the company after Albert Manifold assumed his position and demanded a more radical reshaping to increase profitability. (Reporting and editing by Rashmi aich in Bengaluru)

(source: Reuters)