BP said it has reached an agreement to offload a 65% shareholding in Castrol, generating total net proceeds of around $6 billion, including accelerated dividend payments. The proceeds will be fully used to reduce net debt towards its target range of $14–18 billion by end 2027. The energy major’s net debt stood at $26.1 billion at the end of 3Q 2025.
The transaction follows a strategic review of Castrol and values the business at an enterprise value of $10.1 billion, implying an EV/LTM EBITDA multiple of around 8.6x. BP said the deal strengthens its balance sheet, simplifies its portfolio, and supports its strategy to focus on downstream operations.
At the end of the September quarter, Parent Castrol sold 51% stake in the Indian entity. LIC has a 10% stake in Castrol India, followed by the Government of Singapore with a 1.33% stake. Over 5 lakh small retail shareholders, or those with authorised share capital of up to ₹2 lakh, had a 16.6% stake in Castrol India.
The current transaction is expected to complete by end of 2026, subject to regulatory approvals.
On completion, a new joint venture will be formed with 65% ownership by Stonepeak and 35% by BP which will give the later exposure to Castrol’s growth plan. After a two-year lock-up period, bp will have the option to sell its remaining 35% stake.
BP’s interim CEO Carol Howle termed the move a “very good outcome for all stakeholders”.
“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. And we are doing so with increasing intensity – with a continued focus on growing cash flow and returns, and delivering value for our shareholders,” Howle said.
The transaction also includes minority interests in Castrol, principally in India (49% interest), Vietnam (35%), Saudi Arabia (50%), Thailand (40%) and other jurisdiction.
After surging earlier in the session, the stock gave up some gains and traded at ₹191.21, still up 2.84% on the NSE as of 1.42 pm.
First Published: Dec 24, 2025 1:04 PM IS
