GuShiio.com ① Saudi Aramco is considering bidding for British Petroleum Corporation’s Castrol lubricant business to strengthen its market strategic layout;
②bp plans to divest approximately US$20 billion in assets before the end of 2027. First, it conducts a strategic review of Castrol’s business and is expected to sell it at a valuation of US$6 billion to US$8 billion;
③ It is reported that if Saudi Aramco’s acquisition is successful, it may integrate Castrol with the previously acquired winning lubricant business.
Cailian News, March 6 (Editor Qin Jiahe)According to people familiar with the matter, global energy giant Saudi Aramco is considering participating in a bid for BP’s Castrol lubricant business to strengthen its market strategic layout.
Previously, bp announced a strategic adjustment, announcing that it would divest approximately US$20 billion in assets by the end of 2027, and first conducted a strategic review of Castrol’s lubricants business. Ashley Kelty, an analyst at British investment bank Panmure Liberum, estimates that the business will be sold at a valuation of $6 billion to $8 billion.
People familiar with the matter said that if the deal is reached, Saudi Aramco may integrate its Valvoline lubricant business, which it acquired for US$2.65 billion in 2023, with Castrol assets to expand market influence.
It is reported that Saudi Aramco has shown strong interest in Castrol’s business in emerging markets such as India. Data shows that its Indian subsidiary Castrol India Ltd. currently has a market value of approximately US$2.5 billion on the Mumbai Stock Exchange.
Affected by the news, bp’s share price rose 2% in London trading on Wednesday, the largest intraday gain in more than three weeks, and finally closed basically flat, with a current market value of about US$84 billion.
People familiar with the matter said Saudi Aramco is still studying the bidding plan and has not yet made a final decision on whether to submit a formal offer. In addition, Castrol Assets has also attracted other bidders, but all parties have not yet made their statements publicly. Representatives for bp and saudi armco declined to comment.
In recent years, Saudi Aramco has continued to increase its refining and terminal sales in the Asian market, and regards China, India and Southeast Asia as major growth areas.
In April 2024, it signed a memorandum of understanding with China Hengli Petrochemical, planning to acquire 10% of the latter’s shares; in May of the same year, it completed the acquisition of 40% of the shares of Pakistan Natural Gas and Petroleum Company Limited (GO); in February 2025, Saudi Aramco announced the acquisition of a 25% stake in the Philippine oil company Unioil.
By acquiring downstream businesses such as gas stations and lubricant manufacturers, Saudi Aramco is accelerating the extension of its business layout downstream of the energy value chain and penetrating into the crude oil sales market.
