Reliance, Aramco, Brookfield: Here Are Suitors for BP's Castrol Lubricant Business

British oil giant BP Plc’s plan to sell its global Castrol lubricant business has attracted a wide range of suitors from around the world. The financially strained company announced a strategic review of the Castrol-branded unit in February, under pressure from activist investor Elliott Investment Management.

According to a report by Bloomberg, energy majors such as Mukesh Ambani’s Reliance Industries and Saudi Aramco have expressed interest in the business. In addition, private equity firms including Apollo Global Management, Lone Star Funds, Brookfield Asset Management, and Stonepeak Partners are also eyeing bids for the unit.

The report notes that the process is still in its early stages, with initial bids expected in the coming weeks. The final price and outcome remain uncertain, but Castrol could fetch BP between $8 billion and $10 billion, according to estimates.

“The strategic review of Castrol will consider all options with a focus on value creation. Proceeds from any potential transaction that may arise as a result of the review will be allocated to strengthening BP’s balance sheet,” the company said in February.

Castrol’s portfolio includes automotive and industrial lubricants and is also advancing liquid cooling solutions for AI data centres. Its strong presence in high-growth markets like India has particularly attracted interest from companies like Reliance and Aramco, the report said.

Bankers are reportedly working on a $4 billion-equivalent debt package to support potential bids. The financing—likely a mix of leveraged loans and high-yield bonds—will be structured in multiple currencies, including euros and US dollars, to maximise investor interest. With few large buyout deals expected this year, the transaction is drawing early attention from both investors and lenders.

BP’s review of Castrol is part of a wider corporate overhaul following mounting pressure from Elliott Investment Management, which recently became one of its top shareholders.

Meanwhile, with oil prices under pressure, BP’s broader strategic reset is already facing headwinds—making successful asset sales like Castrol even more critical.

In its Q1 2025 results, BP reported a nearly 50% drop in profits to $1.38 billion, down from $2.72 billion in the same period last year, due to weaker refining margins and market volatility. The company has cut its annual capital expenditure by $500 million to $14.5 billion and increased planned asset sales to $4 billion. It also launched a $750 million share buyback programme to reassure investors following the earnings miss.