BP has agreed to sell a 65% stake in Castrol, its flagship lubricants business, to investment fund Stonepeak for $6 billion, valuing the unit at $10.1 billion.

The transaction is part of the British energy group’s broader strategic repositioning, which includes moving away from its previous green-focused strategy and implementing a $20 billion divestment program by the end of 2027.

BP said that the sale means it has already completed or initiated more than half of its planned divestments, with the proceeds significantly strengthening its balance sheet. The company will retain the option to sell the remaining 35% stake in Castrol after a two-year lock-up period.

Castrol attracted strong interest from investors, with potential bidders reportedly including major energy companies such as Saudi Aramco and Reliance Industries, as well as international private equity funds. The choice of Stonepeak underscores BP’s shift toward a simpler corporate structure and a renewed focus on its core oil and gas operations.

The deal was announced just days after BP confirmed a leadership change, with Woodside Energy chief executive Meg O’Neill set to take over as CEO on 1 April. Analysts say the management transition and targeted asset sales are key steps in restoring investor confidence following several years of underperformance and declining earnings in 2023 and 2024.

BP shares rose modestly after the announcement, and the stock is up about 9% so far this year, recovering from a significant decline in 2024.