Saudi Aramco exploring initial bid for BP’s Castrol unit, source says

(Reuters) – The Saudi Aramco is in the early stages of considering a possible presentation of BP Castrol Castrol, according to a person who is aware of the issue.

BP explores all options about Castrol works, including the potential sales process, as part of a strategic review.

Ashley Keeleti, an analyst at Panmure Liberum, said in a memorandum last week, which is expected to range from $ 6 billion to 8 billion dollars.

BP spokesman refused to comment. Aramco did not immediately respond to Reuters request for comment.

BP shares rose 1 % in 412.15p at 1332 GMT.

Bloomberg News was the first to inform Aramco's interest in Castrol on Wednesday, which comes one day after the Saudi oil giant announced a decrease in his annual profits and indicated that he would reduce his profits by about a third of this year.

BP said last week that she was reviewing lubricating oils, Castrol, and targeting $ 20 billion of disposal of 2027.

Divestment Program is a major part of the Murray Auchincloss Strategy to reduce capital expenditures, reduce costs, abstract assets, pay high cash flows and returns, and eventually aims to restore investor confidence and enhance profits.

BP, which has established its non -performance peers such as Shell and Exxon, was increasingly pressured to change the strategy after they were told that the American investor Elliott Investment Management built a 5 % stake in the company.

According to Elliott, BP will benefit from selling Castrol lubricants and its network from service stations to cancel value insurance and increase shares repocrides.

Bloomberg's report said that Aramco has not made a final decision on a possible Castrol show structure or whether it will continue because the deliberations are still in the early stage.

(Partkaqala's reports participated in Pushkala, Berna Bidi Shaneima in Bangaluru and Arienima Kumar in Mumbai; edited by Sherry Yaqoub Philips, Leroy Leo and Francis Kerry)