BP Sells 11.5% Stake in Castrol India for Undisclosed Sum; Still Holds 59.5%

By Ian Walker

LONDON--Oil giant BP PLC (BP.LN) said Thursday its subsidiary Castrol Ltd. has sold an 11.5% stake in Castrol India Ltd. (500870.BY) to domestic and international investors for an undisclosed sum.

Following the sale, Castrol will own 59.5% of Castrol India, BP said, adding that it plans to continue as a majority shareholder of the company.

"India is a key market for Castrol with tremendous growth potential and is a major element of our global lubricants business," said Sashi Mukundan, BP's head of country for India.

"We will continue to have strategic control of Castrol India and this decision is independent of our upstream investments which we continue to progress. We are investing in India and plan to continue to do so," he said.

BP Chief Executive Bob Dudley, said: "BP remains committed to India and we wish to continue to grow our businesses here, progressing our upstream natural gas developments as well as our downstream opportunities, including lubricants."

Castrol India delivered a post-tax profit of around $95 million in 2015, 30% up on the previous year. For the first quarter of 2016 post-tax profit was $26.5 million.

Write to Ian Walker at [e-mail]; @IanWalk40289749

(END) Dow Jones Newswires

May 19, 2016 05:29 ET (09:29 GMT)

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