Core Insights - BP p.l.c. has agreed to divest 65% of its stake in Castrol to Stonepeak, creating a new joint venture while retaining a 35% stake, with an estimated enterprise value of $10.1 billion, leading to approximately $6 billion in net proceeds from the sale, expected to close by the end of 2026 [1][7] - This divestment aligns with BP's strategy to reduce its debt profile and focus on more profitable businesses, with a goal to divest $20 billion in assets, of which $11 billion is currently planned, aiming to reduce net debt to $14-$18 billion by the end of 2027 from $26.1 billion [2][7] - BP is divesting non-profitable businesses to strengthen its business model, believing these moves will enhance shareholder value and improve investor appeal in the long term [3] Industry Context - Other key players in the integrated energy sector, such as Exxon Mobil Corporation, Chevron Corporation, and Eni S.p.A., are also facing pressures due to low crude oil prices, with ExxonMobil projecting $25 billion in earnings growth and $35 billion in cash-flow growth by 2030 [4] - Chevron plans to increase its production from 2.6 million barrels of oil equivalent per day (MMBOED) in 2015 to 3.7 MMBOED by the end of 2025, with a capital expenditure plan of $18-$19 billion for 2026 [5] - Eni S.p.A. expects its daily production to rise to 1,710-1,720 barrels of oil equivalent by 2025, up from a previous forecast of 1,700 barrels [6]
BP to Sell 65% Stake in Castrol to Stonepeak for $10B EV