BP is in advanced discussions with Stonepeak Infrastructure Partners, an investment firm based in New York, to sell its Castrol global lubricants business for an undisclosed sum estimated between U.S.$6 billion and $8 billion. The proposed deal would mark a significant step toward the company’s $20 billion divestment target.
Under its Strategic Review, initiated earlier in 2025, the company has said proceeds from any transaction would be used to bolster its financial position. The sale would be a significant step toward a divestment target of $20 billion in assets.
BP initiated the sale after pressure from activist investor Elliott Management demanding sharper capital discipline.
Interest in Castrol has drawn a range of bidders, including One Rock Capital Partners, Reliance Industries, Apollo Global Management and Lone Star Funds, though some early offers reportedly fell short of BP’s initial valuation expectations. Stonepeak and another investment firm, One Rock Capital, submitted bids at the same time in September.
As to whether the deal will complete, a senior industry consultant and former Castrol employee asks whether it fits Stonepeak’s typical investment targets. Stonepeak’s portfolio includes energy, logistics, real estate and digital infrastructure.
“If it’s a genuine bid, it is a positive vote for the future of the lubricants industry,” Jan Trocki told Lube Report. “Why did existing industry-related players not see whatever Stonepeak sees?”
BP and Stonepeak declined to comment.