BP eyes potential $10B sale of Castrol lubricants

Pressure for sale comes after Elliott Management’s recent acquisition of a 5% stake in the company.

BP is reportedly considering the sale of its lubricants business, Castrol, in a deal worth approximately $10 billion. 

According to a Bloomberg News report, the potential sale is one of several strategic options the energy giant is currently evaluating. Castrol is among the assets identified for possible sale by Elliott Management, which recently acquired a 5% stake in the company.

Elliott’s engagement with BP comes ahead of the company’s upcoming Capital Markets Day on February 26, where the firm may announce the potential sale of Castrol, among other plans.

Castrol, which serves customers in over 150 countries across sectors like automotive, marine, industrial, aerospace, and energy production, has been a key part of the company's operations. However, BP’s recent financial performance has raised questions about the company's current strategy. 

In the fourth quarter of 2024, the company reported a 61% drop in profits year-on-year, marking the weakest performance since Q4 2020 when the pandemic lockdowns decimated global oil demand.

The future of Castrol, as well as other parts of BP’s portfolio, could be clarified as the company moves forward with its plans for the next phase of its transformation.