BP is to sell a 65% stake in Castrol to alternative investment vehicle Stonepeak.
The deal has an enterprise value of $10.1 billion, with BP set to receive net proceeds of roughly $6 billion - which includes accelerated dividend payments.
The energy giant said it would use that money to reduce its net debt.
As part of the deal a new joint venture will be established with Stonepeak to manage Castrol, with BP appointing two members to its board in recognition of its 35% shareholding.
BP said retaining a shareholding in Castrol "provides exposure to Castrol's
growth plan over the coming years."
The sale of a majority stake in the lubricants business is part of BP's plan to simplify its business while also reducing its debt burden.
It plans to sell off $20 billion worth of its business, reducing its net debt by up to $18 billion by the end of 2027.
