What is the BP Castrol stake sale?

BP agreed to sell 65% of Castrol to Stonepeak for US$6.0 billion, valuing the business at US$10.1 billion. BP keeps a 35% stake and commercial agreements. The move is aimed at paying down debt and sharpening focus on core oil and gas. Closing is targeted by end-2026, subject to approvals.

How could this affect BP’s dividend and buybacks?

The cash can reduce net debt, lower interest costs, and improve financial flexibility. With a dividend yield near 5.7%, healthier leverage supports payout visibility and potential buybacks. Final capital returns will still depend on oil prices, refining margins, and the timing of deal completion and regulatory approvals.

What are the main risks to the Stonepeak Castrol deal?

Key risks include regulatory approvals across multiple markets, execution of separation and service agreements, and funding terms for the buyer. A delay would push back debt reduction and capital return decisions. There is also the Castrol India MTO process, which may change local ownership and timing considerations.

What should Australian investors watch next?

Track official updates on approvals and any Castrol India MTO announcement. Watch BP’s ADR price versus technical levels and the consensus target of US$41.5. Oil prices, FX, and dividend guidance will drive total returns for Australians more than headlines. The next reported earnings date is 10 February 2026.

Global Market Insights

BP Stock Today: December 28 — Stonepeak Castrol Deal Nets $6B

ByHuzaifa Zahoor December 28, 2025December 28, 2025

BP Castrol stake sale headlines today as BP sells 65% of Castrol to Stonepeak, raising US$6.0 billion at a US$10.1 billion valuation. BP will keep a 35% stake and commercial ties. Management signals proceeds will support debt reduction and core oil and gas growth. For Australian investors, this move may improve balance sheet strength and payouts while keeping exposure to Castrol’s brand. We explain the Stonepeak Castrol deal, the BP deleveraging plan, the asset divestment 2026 timeline, and what to watch next.