Saudi Aramco is reportedly considering a potential offer for lubricant assets being sold by BP Plc, as the Middle Eastern energy giant seeks acquisitions to strengthen its presence in oil-consuming countries, according to Bloomberg.
The world’s largest energy company is exploring whether to bid for part or all of BP’s Castrol lubricants business, which operates under the Castrol brand, insiders revealed. Notably, Aramco is particularly interested in Castrol India, a key player in the country’s automotive and industrial lubricants market.
If a deal materializes, Aramco could look to integrate the Castrol assets with its Valvoline lubricants unit, which it acquired in a $2.65 billion deal in 2023. This move would further expand Aramco’s downstream portfolio and strengthen its foothold in the global lubricants sector.
However, sources indicate that deliberations are still at an early stage, and there is no certainty that Aramco will make a formal bid. If pursued, the acquisition could mark a significant shift in the global lubricants market, reinforcing Aramco’s strategy of increasing its presence in key oil-consuming economies.
