BP has announced a strategic review of its Castrol lubricants business to assess potential options for enhancing value. This move aligns with BP’s broader strategy to refocus on its core oil and gas operations, aiming to raise $20 billion through asset sales by 2027 to strengthen its balance sheet.
Castrol operates in over 150 countries, offering lubricants for the automotive, marine, industrial, and energy sectors. In 2024, Castrol India Limited, a subsidiary of BP, reported a 6% increase in revenue, reaching ₹5,365 crore, and a 7% rise in profit after tax, totaling ₹927 crore.
BP’s strategic shift includes increasing annual spending on oil and gas by 20% to $10 billion and reducing investment in renewables by 70%. This decision follows investor pressure and aims to reallocate capital to higher-return businesses.
The review of Castrol is in its early stages, and no specific outcomes have been determined. BP has stated that proceeds from any potential transaction will be used to reinforce its balance sheet.