United Kingdom’s BP has agreed to sell a 65 per cent stake in its Castrol lubricants business to Stonepeak for $6 billion, months after the British oil major began seeking a buyer for the unit.

The transaction is part of BP’s broader strategic reset, which includes a reversal of elements of its green strategy and plans to divest $20 billion in assets by the end of 2027. The deal values Castrol at $10.1 billion.

Energy companies such as India’s Reliance Industries and Saudi Aramco, alongside private equity firms Apollo Global Management and Lone Star Funds, were among those tipped as potential bidders for BP’s Castrol unit in May, according to Bloomberg, citing people familiar with the matter.

“With this, we have now completed or announced over half of our targeted $20bn divestment programme, with proceeds to significantly strengthen bp’s balance sheet,” interim CEO Carol Howle said in a statement.

“The sale marks an important milestone in the ongoing delivery of our reset strategy. We are reducing complexity, focusing the downstream on our leading integrated businesses, and accelerating delivery of our plan.”

BP retains the option to sell its remaining 35 per cent stake in Castrol after a two-year lock-up period.

The sale of the majority stake comes just days after the oil major announced the appointment of a new chief executive, its fourth in six years.

Woodside Energy chief executive Meg O’Neill will assume the role on April 1, replacing Murray Auchincloss, who spent less than two years in the position.

The London-listed company has lagged its peers in recent years, reporting falling annual profits in both 2023 and 2024.

BP’s shares opened up 1.3 per cent on Wednesday before trimming gains to trade about 0.9 per cent higher. The stock is up roughly 9% so far this year, after slumping 15.7 per cent in 2024.

Pressure on the shares has eased in 2025 amid a leadership shake-up, a cost-cutting drive and a series of oil discoveries.