British oil large BP mentioned Wednesday it has agreed to promote a majority stake in its Castrol lubricants enterprise to US funding agency Stonepeak, because it seeks to chop debt.
The sale of BP’s 65 per cent stake will internet it round $6 billion, the corporate mentioned in a press release.
The deal, which values Castrol at $10.1 billion, is anticipated to be accomplished by the tip of 2026.
Castrol will likely be owned by a three way partnership, with BP retaining a minority stake.
“The sale marks an essential milestone within the ongoing supply of our reset technique,” mentioned interim chief govt Carol Howle.
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To assist flip round years of lagging efficiency, BP plans to divest $20 billion of property by the tip of 2027 because it pivots again to its extra worthwhile oil and fuel enterprise and slashes clear power funding.
“Now we have now accomplished or introduced over half of our focused $20 billion divestment programme, with proceeds to considerably strengthen BP’s stability sheet,” Howle mentioned.
BP prolonged its shakeup final week because it appointed power business veteran Meg O’Neill to grow to be chief govt from April, changing Murray Auchincloss.
American nationwide O’Neill joins BP from her place as chief govt of Australian group Woodside Power.
AFP
