Saudi Aramco, the world’s largest energy company, is contemplating a potential bid for lubricant assets being sold by BP Plc. This move aligns with the Middle Eastern company’s strategy to enhance its presence in oil-consuming countries, according to sources familiar with the matter.

Aramco is evaluating whether to bid for part or all of the Castrol brand’s business. The company may seek to integrate the Castrol assets with its Valvoline lubricants unit, which it acquired in a $2.65 billion deal completed in 2023. BP is currently undergoing a strategic review of its Castrol lubricants business, which could be valued at approximately $10 billion, as previously reported by Bloomberg News.

The interests of Aramco are particularly focused on Castrol’s operations in rapidly growing markets such as India. Its subsidiary, Castrol India Ltd., holds a market value of around $2.5 billion. While discussions are still in the preliminary stages, and a final decision on the bid structure has not been made, other bidders are also showing interest in the Castrol assets. Representatives from both Aramco and BP declined to comment on the situation.

Last year, Aramco indicated its intention to pursue more acquisitions in refining and chemicals within Asia, identifying China, India, and Southeast Asia as key growth markets. By owning businesses like filling stations and lubricant manufacturers, oil producers can enhance their influence along the energy value chain and penetrate deeper into markets where they sell crude oil.

State-owned Aramco has recently engaged in several deals for refining and chemical assets in China and acquired a stake in a Philippine company last month to access the retail market. Additionally, it is reportedly among the bidders for Shell Plc’s service stations in South Africa, as noted by Bloomberg News.