en.Wedoany.com Report on Mar 21st, bp has reached an agreement with the European independent refiner Klesch Group to sell its refinery and related businesses located in Gelsenkirchen, Germany. This move is part of bp's strategy to simplify its portfolio and strengthen its balance sheet, aiming to enhance the focus of its downstream business.
This transaction is expected to help bp achieve structural cost reductions of $6.5 to $7.5 billion by 2027, including approximately $1 billion in savings related to the base operating expenditure of the Gelsenkirchen refinery. bp's interim CEO Carol Howle stated: "Through this deal, we are strengthening the balance sheet, raising our structural cost reduction target, and enhancing the resilience of our focused refining portfolio. We will continue to take decisive action to reduce portfolio complexity — maintaining a consistent focus on growing cash flow and returns to create value for our shareholders."
The Gelsenkirchen refinery processes approximately 12 million tons of crude oil annually, primarily producing fuel for vehicles and aircraft, and supplying key feedstocks to the German and European petrochemical industries. The transaction includes the refinery, the Bottrop tank farm, the subsidiary DHC Solvent Chemie GmbH, interests in logistics joint ventures, and related marketing businesses. To maintain regional supply, bp has secured fuel purchase arrangements.
The refinery site currently employs around 1,800 people, and the experienced workforce is expected to join the Klesch Group upon completion of the transaction. The deal is subject to conditions including regulatory and government approvals and is expected to close in the second half of 2026. Patrick Wendeler, bp's head of Germany, added: "We have a long history of operating successful assets and brands in Germany, and we are deeply grateful for the refinery's contribution to our business over decades. We believe Klesch Group's experience in refining makes it the right owner for the next phase of Gelsenkirchen."
The Klesch Group is an independent refiner owning the Heide refinery in Germany and the Kalundborg refinery in Denmark, playing a significant role in supporting European fuel supply security. This sale of the Gelsenkirchen refinery will further optimize bp's portfolio and improve operational efficiency.
