BP completes Castrol business divestment, receives $6 billion to pay off debts

BP has completed the divestment of its Castrol lubricants business, raising $6 billion in funds to repay debt and improve its balance sheet. At the end of last year, BP agreed to sell a 65% stake in Castrol to US investment firm Stonepeak Partners. This deal marks a key step for BP in restructuring its business and adjusting its strategy after years of underperformance. BP is using surplus cash to pay down various financial liabilities, including general debt, hybrid bonds, lease obligations, and compensation related to the "Deepwater Horizon" oil spill incident. When BP announced strong results last week, it stated that as of the end of the third quarter, the company’s net debt stood at $13.87 billion.