bp and Castrol: ready for a new era

In 26 years together, bp and Castrol have travelled a long way – from racetracks and space missions to engine oils and data centre cooling.

Castrol’s customer focus and innovation plus bp’s scale, investment and global reach have been a powerful combination. Now, it’s time to switch gears.

Completion of the sale of 65% of Castrol to leading alternative investment firm Stonepeak unlocks net proceeds of $6 billion, which bp will use to strengthen the balance sheet. bp will retain a 35% ownership stake in Castrol, and we will continue to partner on projects including as technology partners of the Audi Revolut F1® Team.

For Castrol, its new ownership structure is designed to help the brand build on its momentum and accelerate into its next phase of growth.

“This is an important moment for both bp and Castrol. For bp, the transaction strengthens our financial position and allows us to focus our time, capital and effort on the areas where we can deliver the greatest value,” says Richard Harding, bp’s interim EVP, Downstream. “Castrol has a strong foundation and an exciting future, and with Stonepeak’s support it is well placed to continue growing and creating value.”

Growing a global brand

After joining forces with bp, Castrol expanded from serving customers in 50 countries to more than 150, while broadening its portfolio from traditional engine oils into cooling fluids for electric vehicles and data centres. The new operating structure will give the brand an opportunity to expand its product range and reach even further.

Back in 2000, it was Castrol’s potential for growth that was part of the appeal to bp. The acquisition – for £3 billion – helped bp strengthen its lubricants business and grow its downstream portfolio.

"Castrol is one of the great lubricants brands of the world," said bp’s then CEO Sir John Browne in 2000. "It is a name that stands for superbly engineered products of the highest quality, and research and development that has consistently kept those products at the forefront of the marketplace."

What bp and Castrol learned from each other

Throughout our relationship, both bp and Castrol have benefited from each other's strengths. bp benefited from Castrol's focus on customers, technical experience, innovation and deep expertise in lubricants, while Castrol gained access to bp's scale, global relationships and research capabilities.

The collaboration included bp’s £50 million investment in a new battery and electric vehicle fluids research centre at Pangbourne, Castrol's Technology Centre in the UK. With bp’s support, Castrol also invested in manufacturing sites around the world, helping modernize plants and introduce new digital technologies.

The exchange was not only about investment and technology. bp and Castrol also shared expertise in areas such as safety, leadership and ways of working.

“I’ve seen a real shift in safety culture at Castrol over the decades. Safety was seen mainly as the responsibility of functional safety teams. Now, everyone makes safety an integral part of their work and is an empowered safety leader,” says Soren Malekar, Castrol separation programme lead.

The learning went both ways. bp benefited from Castrol’s entrepreneurial culture and focus on customers.

"When people at bp talked about speed and commercial focus, Castrol was often the example. It had a way of staying close to customers and making commercial decisions quickly that others could learn from," says Andreas Osbar, VP strategic programs and transformation at Castrol.

From engine oils to EVs and data centres

Since joining bp, Castrol has established a pipeline of pioneering new products, even growing beyond its traditional lubricants business.

One of the first products launched after bp got involved was car engine oil Castrol EDGE, still the most advanced consumer lubricant in the company’s portfolio, intended in part for bp’s retail network.

In addition, Castrol developed a heavy-duty diesel engine oil for use specifically for heavy-duty commercial vehicles, Castrol VECTON. It helped establish Castrol as a supplier not just of lubricants, but of products aimed at improving fleet efficiency.

In the early 2020s, as more drivers turned toward electric vehicles, Castrol introduced a range of EV-specific transmission fluids, thermal fluids, and lubricants. Castrol ON became and stayed a lubricant of choice for major EV manufacturers with three out of four major vehicle manufacturers using Castrol EV fluids¹.

Castrol, meanwhile, didn’t limit its lubricants research and development to vehicles only. Partly inspired by bp’s need for biodegradable lubricants for use offshore, it developed a biodegradable marine lubricants range.

More recently, Castrol applied its thermal management expertise to data centres, developing liquid cooling solutions to help meet the rapidly growing demand from AI infrastructure.

“Castrol has innovation in its DNA, which is why, 127 years on, Castrol is still at the forefront of entirely new industries – data centres, EVs, industrial applications,” says Richard.

Castrol in space and sport

That expertise has also taken Castrol into demanding environments, including space and motorsport.

Castrol has worked with NASA for more than 60 years and its space-grade lubricants have supported missions ranging from the Apollo programme and the International Space Station to NASA's Mars rovers.

Meanwhile, its motorsport partnerships have helped the brand become a household name associated with performance and innovation. Castrol and bp are currently the technical partners of the Audi Revolut F1® Team, helping develop and test high-performance lubricants and fluids.

“Castrol has been able to take a product that is largely invisible and turn it into an amazing brand,” says Sandeep Sangwan, Castrol’s chief marketing officer.