BP has completed the sale of a 65% stake in its Castrol lubricants business to US investment firm Stonepeak Partners for $6 billion. The oil and gas company said it intends to use the proceeds to reduce its debt.
BP agreed to the transaction at the end of last year as part of a broader effort to restructure its business after years of weak performance. The company is directing available cash toward several financial obligations, including standard debt, hybrid bonds, leases and payments connected to the Deepwater Horizon disaster settlement.
BP reported net debt of $13.87 billion at the end of the third quarter, alongside its latest earnings results.
Chief Executive Officer Meg O’Neill said the transaction provides BP with significant cash proceeds while allowing it to retain a stake in Castrol’s future growth. She added that the business would have greater independence to accelerate its next phase of development.
The sale is part of a series of asset disposals carried out by BP as it seeks to streamline its operations and focus investment on its main upstream, downstream and trading businesses. O’Neill, who became the company’s first external hire to lead it in April, is scheduled to present BP’s long-term strategy in December.
Sources: Investing.com News.