BP Targets $20B in Divestments by 2027, Eyes Castrol Sale Amid Restructuring

BP p.l.c. (NYSE:BP) is one of the 10 most undervalued oil stocks to buy according to analysts. Murray Auchincloss, the CEO of BP p.l.c. (NYSE:BP), reaffirmed his belief on June 12 that the company will accomplish its $20 billion disposal goal, with a number of acquisitions anticipated to be disclosed “relatively soon.”

As part of a larger $20 billion divestment plan by 2027, BP p.l.c. (NYSE:BP) has started selling its Castrol lubricants division with the goal of raising up to $10 billion. In response to growing investor pressure, the British energy company is making efforts to reallocate cash, lower debt, and boost shareholder returns. The transaction comes after prior rumors that Saudi Aramco had been considering about making a bid. BP acknowledged that it had inked agreements for $1.5 billion in divestitures so far and is still looking into selling other assets, including its Gelsenkirchen refinery and a stake in the solar energy company Lightsource bp.

In a virtual meeting with RBC, Auchincloss mentioned flexibility in a number of areas, including about $500 million in exploration, $1 billion in major unsanctioned projects, and potential changes in the U.S. onshore sector, where current spending is about $2.4 billion a year.

BP p.l.c. (NYSE:BP) is an integrated oil and gas firm offers carbon-related goods and services. Its operations are separated into three segments: Customers and Products, Oil Production and Operations, and Gas and Low Carbon Energy.

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