BP has agreed to sell a 65% stake in its motor oil division, Castrol, to US investment firm Stonepeak for $6 billion. The deal, valued at $10.1 billion, marks a significant milestone in the oil giant's plans to overhaul its business and reduce costs.

Under the terms of the agreement, BP will receive $6 billion in cash, which it plans to use to pay down debts and focus on its core crude oil and gas business. The company will retain a 35% stake in Castrol, which it first acquired in 2000. The sale is part of BP's broader strategy to divest $20 billion worth of assets, a goal it says it is now more than halfway to achieving.

The deal is a significant one for BP, which has faced pressure from investors to focus on its core business and strengthen its balance sheet. The company's profits and share price have lagged behind those of its rivals, including Shell and Norway's Equinor, in recent years. BP's decision to shift its strategy away from investment in green energy and back towards oil and gas production is seen as a response to these investor concerns.

In terms of financial metrics, the sale of Castrol is expected to have a positive impact on BP's bottom line. The company's net debt is expected to decline by $6 billion, while its cash flow will increase by a similar amount. BP's shares have risen by 2% in response to the news, with investors welcoming the company's decision to focus on its core business.

The sale of Castrol is also significant for Stonepeak, which has invested heavily in the energy sector in recent years. The firm has a strong track record of investing in midstream and downstream energy assets, and the acquisition of Castrol is seen as a major coup.

In the context of the broader energy market, the sale of Castrol highlights the ongoing trend of consolidation and divestment in the sector. As companies seek to focus on their core businesses and reduce costs, they are selling off non-core assets and investing in more strategic opportunities. This trend is expected to continue in the coming years, with many energy companies looking to divest assets and focus on growth opportunities.

BP's decision to sell Castrol is also seen as a response to the changing landscape of the energy industry. As the world shifts towards a lower-carbon future, companies are being forced to adapt and respond to changing investor sentiment. BP's decision to focus on its core oil and gas business is seen as a pragmatic response to these changes, and one that is likely to be welcomed by investors.

Looking ahead, the sale of Castrol is expected to have a positive impact on BP's financial performance. The company's focus on its core business and reduction in debt will provide a solid foundation for future growth, while its decision to divest non-core assets will help to improve its balance sheet. As the energy industry continues to evolve, BP is well-positioned to take advantage of new opportunities and drive growth in the coming years.