Sparks - bp

bp announced today (2 November 2026) that it has completed the sale of a 65% stake in Castrol to Stonepeak, generating $6.0bn of after-tax proceeds, which will be used to reduce financial obligations as part of bp’s focus on strengthening its balance sheet. The proceeds include c $0.8bn relating to the pre-payment of future dividend income over the short to medium term on bp’s retained 35% stake, alongside other customary transaction adjustments. Castrol will now operate as a standalone company with its own management, governance and strategic priorities, while bp retains a 35% interest.

bp will account for its retained 35% stake as an equity-accounted investment and does not expect to recognise earnings or receive a dividend from Castrol in the short to medium term, with Stonepeak having a preference on distributions. Following a two-year lock-up period, bp will have the option to sell its remaining interest. The transaction includes Castrol’s minority interests, principally in India, Vietnam, Saudi Arabia and Thailand; these non-controlling interests contributed an average of c $100m of annual net income between 2019 and 2025 and were recognised at c $0.45bn on bp’s balance sheet at 30 September 2026, alongside c $0.3bn of Castrol debt-like obligations.