Saudi Aramco studies potential buyout of BP’s Castrol business

The news comes after the British energy giant confirmed it would review its lubricants division and the Saudi company revealed plans to reduce its dividend payouts.

Saudi Aramco is in the preliminary stages of evaluating a potential bid for BP’s lubricant business, Castrol, according to a report by Bloomberg News.

BP has been conducting a strategic review of its lubricant assets, exploring various options, including a potential sale. The news of Aramco’s interest follows the Saudi oil giant’s announcement of a decline in annual profit and plans to reduce its dividend payouts by nearly a third this year.

On the other hand, the British energy giant recently confirmed it is reviewing its lubricants division as part of a broader $20 billion divestment plan set to be completed by 2027. 

The move aligns with CEO Murray Auchincloss’ strategy to scale back spending on renewables, instead shifting focus toward oil and gas production to boost profitability.

Initially, the deal was estimated to be worth $10 billion, but a recent note from Panmure Liberum’s Ashley Kelty estimated that the business could be valued between $6 billion and $8 billion.