BP has agreed to sell a 65% stake in its motor oil division, Castrol, to Stonepeak, a US investment firm, for $6 billion. The deal, announced today, values Castrol at $10.1 billion and will provide BP with a significant cash injection.

The $6 billion received will be used to reduce BP's debt and allow the company to concentrate on its core oil and gas operations. BP will retain a 35% stake in Castrol, a business it initially acquired in 2000. The sale represents a significant step in BP's previously announced plans to divest $20 billion in assets. With this deal, the company reports it is more than halfway to achieving that target.

The sale comes as BP shifts its strategic focus back towards oil and gas, a move influenced by investor pressure after the company's profits and share price underperformed compared to its rivals, including Shell and Norway's Equinor. This strategic shift marks a recalibration of BP's earlier ambitions in green energy investments.

Castrol, known for its lubricants used in cars, motorcycles, and industrial vehicles, has been a part of BP's portfolio for over two decades. The divestment signals BP's intent to streamline its operations and prioritize its traditional energy business.

Looking ahead, the deal is expected to close in the near future, pending regulatory approvals. BP's focus will now be on optimizing its core oil and gas assets, while Stonepeak will assume majority ownership of Castrol, charting its future direction in the lubricants market.