BP is experiencing mounting pressure from its investors, especially from activist group Elliott Management, which has secured a 5 percent stake. This group is advocating for a restructuring of the business to drive improvements and raise the company’s share price.

Bloomberg News reported that sources familiar with the matter have indicated that BP is considering the potential sale of its Castrol division, among other strategic options. According to anonymous sources, the report says that this segment of the company, which operates under the Castrol brand, could be valued at around $10 billion in a potential sale. The divestiture of the Castrol business is part of a broader strategy BP is evaluating to regain investor confidence after a period of disappointing performance. 

Bloomberg notes that sources reported that BP may reveal plans for a potential divestment at its capital markets day on February 26. Discussions regarding the possible sale are still in progress, and no conclusive decisions have been reached.

Elliott, having accumulated a stake valued at approximately £3.7 billion ($4.7 billion) in BP, is urging the company to implement significant cost reductions and divest certain assets to enhance its viability as an independent entity, as reported by Bloomberg News last week. The firm advocates for BP to restructure its operations to align more closely with other major oil companies like Shell Plc, suggesting reductions in expenditures related to renewable energy and substantial divestments of non-essential assets.

Representatives for BP and Elliott, however, declined to comment.