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BP Prepares Lubricants Sale, Ditches Plan to Cut Oil Output in Strategy Review
February 26, 2025
BP Plc is looking to divest its lubricants business which operates under the Castrol brand, according to sources. The potential sale could fetch $10bn and help strengthen balance sheet of the company. BP is also abandoning its plans to reduce oil and gas output, responding to pressures from activist investor Elliott Investment Management. CEO Murray Auchincloss aims to “fundamentally reset” BP’s strategy after disappointing returns from clean energy investments. The company is also scaling back its renewable energy goals and reversing its previous commitment to cut oil production by 25% by 2030. BP is considering selling or spinning off other assets, including its offshore wind and biogas businesses. Elliott, which holds a £3.7bn ($4.68bn) stake in BP, is pushing for significant cost cuts and divestments, and may push for management changes too if dissatisfied. Additionally, BP has secured a deal to redevelop the Kirkuk oil fields in Iraq, potentially boosting its oil and gas production.
BP’s bonds traded stable with its 4.875% Perp at 96.5, yielding 5.65%
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