BP has agreed to sell a 65% stake in its motor oil division, Castrol, to New York-based investment firm Stonepeak for $6 billion. The deal, announced today, values Castrol at $10.1 billion and will provide BP with a significant cash injection.

The $6 billion received will be used to reduce BP's debt and allow the company to concentrate on its core oil and gas operations. BP will retain a 35% stake in Castrol, which it originally acquired in 2000. This sale marks a significant step in BP's previously announced plan to divest $20 billion in assets. With this deal, BP has now achieved over half of its targeted asset sales.

The sale reflects a strategic shift for BP, which is renewing its focus on its traditional oil and gas business. This follows pressure from investors concerned about the company's profitability and share price performance relative to competitors like Shell and Norway's Equinor, particularly in light of its investments in green energy initiatives.

Castrol, known for its lubricants used in cars, motorcycles, and industrial vehicles, has been a part of BP's portfolio for over two decades. The divestment signals BP's broader restructuring efforts to streamline its operations and reduce costs.

Looking ahead, BP's strategy involves a more concentrated approach to its core oil and gas assets, potentially signaling a recalibration of its energy transition strategy in response to investor sentiment and market dynamics. The impact of this strategic shift on the broader energy market and BP's long-term sustainability goals remains to be seen.