BP has initiated the sale of its Castrol lubricants unit, aiming to raise up to $10bn as part of a broader $20bn divestment plan by 2027.

The move comes as the British energy group looks to reallocate capital, reduce debt, and strengthen shareholder returns amid mounting investor pressure.

Goldman Sachs has been appointed to run the sale process, with BP already reaching out to private equity firms and strategic investors, according to sources cited by Reuters. Castrol, one of the world’s leading standalone lubricants businesses, could fetch between $8bn and $10bn based on its projected 2024 EBITDA of $1bn.

The sale follows earlier reports that Saudi Aramco was considering a potential bid. BP confirmed it had signed agreements for $1.5bn of divestments to date and continues to explore other asset sales, including a stake in solar energy firm Lightsource bp and its Gelsenkirchen refinery.

Acquired by BP in 2000 for £3bn, Castrol operates in over 150 countries and has long served as a global motorsport sponsor. Bernstein analysts have suggested it could command a valuation of up to $11bn.

The sale comes amid a strategic shift under CEO Murray Auchincloss, who has scaled back BP’s renewable energy investments in favour of traditional oil and gas assets. The divestment push has intensified following a stake taken by activist investor Elliott Management, which is calling for tighter capital discipline and operational efficiency.

If successful, the Castrol transaction would mark one of BP’s most significant exits in recent years and offer an attractive opportunity for private equity investors looking for global scale and resilient cash flows.

Source: Reuters

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