BP has agreed to sell a majority stake in its Castrol lubricants division to US infrastructure group Stonepeak in a deal that values the business at $10.1bn including debt, as the UK oil and gas major steps up asset sales under new chair Albert Manifold.

As part of the deal, BP will sell a 65 per cent stake in the century-old engine oils and lubricants business to Stonepeak but retain a 35 per cent stake via a joint venture, according to the company. The deal, its biggest divestiture to date, is expected to close at the end of 2026.

BP has pledged to make $20bn in divestments by 2027 in response to pressure from activist hedge fund Elliott Management, which has pushed the FTSE 100 group to cut costs and deleverage. BP kicked off the sale process for Castrol in February.