bp has reached an agreement to sell a 65% shareholding in Castrol to Stonepeak for an enterprise value of $10.1 billion. The transaction is expected to result in total net proceeds to bp of approximately $6.0 billion, which includes around $0.8 billion for the pre-payment of future dividend income over the short to medium term on bp’s retained 35% stake and other adjustments. Upon completion of the transaction, a new joint venture will be incorporated comprising a 65% Stonepeak and 35% bp ownership. bp's retained stake provides exposure to Castrol’s growth plan over the coming years. Following a two-year lock-up period, bp has optionality to sell its 35% stake in Castrol. The transaction is expected to complete by the end of 2026, subject to regulatory approvals. This sale is part of bp’s previously announced $20 billion divestment programme and brings completed and announced divestment proceeds to date to around $11.0 billion. All proceeds from this transaction will be allocated to reducing net debt towards bp’s target of $14-18 billion by the end of 2027.