BP plans to sell its lubricants business
The British oil company BP is attracting several interested parties keen on acquiring its lubricants business. This business is part of the downstream segment and includes marketing and production operations worldwide in areas such as jet fuel, bunkering, bitumen lubricants, and petrochemicals. A successful sale could generate significant revenues for the company in the millions.
Increased sales expectations
BP has already raised its forecast for asset sales in the current year from $3 billion to between $3 billion and $4 billion, indicating that additional assets may be up for sale.
Strategic realignment
This move is part of BP’s strategy to refocus on the oil and gas business after its attempt to transition towards a low-carbon business model has been less successful. Through the planned divestiture of the lubricants business, BP aims to cut expenses—with investments reduced by $500 million to $14.5 billion—and strengthen its balance sheet.
Impact on the stock price
A successful sale could have positive effects on BP’s stock price. Analysts project a target price with a potential increase of about +15.7% over the current price level (around 359 GBP), supported by successful asset sales. A strengthened financial position could also improve BP’s market position relative to competitors like Shell or Chevron.
In summary, these developments demonstrate BP’s efforts to adapt to the challenging energy market situation and to free up capital.