BP agrees to sell Gelsenkirchen refinery in deal with Klesch

BP has signed an statement to divest its Gelsenkirchen refinery and associated businesses successful Germany to European refiner Klesch Group for an undisclosed price.

This merchantability forms portion of bp’s wider strategy to simplify its portfolio and absorption connected its integrated businesses.

The institution has acceptable a revised people for structural outgo reductions of $6.5bn (£4.86bn)–7.5bn by 2027, reflecting anticipated yearly savings of astir $1bn successful underlying operating expenditure pursuing the transaction.

This people represents astir 30% of bp’s 2023 outgo baseline. The institution initially planned for $4–5bn successful savings arsenic announced successful February 2025, and raised this people to $5.5–6.5bn past period aft a strategical reappraisal of Castrol.

The transaction with Klesch Group includes the Bottrop vessel workplace refinery, the DHC Solvent Chemie business, interests successful logistics associated ventures (JVs), and selling operations related to petrochemicals and unbranded business-to-business fuels produced astatine Gelsenkirchen.

BP has besides arranged offtake agreements to support its determination proviso of crushed fuels, aviation substance and coke.

The Gelsenkirchen analyzable processes astir 12 cardinal tonnes per annum (mtpa) of crude oil. It operates 2 sites successful Horst and Scholven with a crude distillation capableness of 265,000 barrels per time (bpd).

The analyzable produces pitchy fuel, diesel, petrol, heating lipid and much than 50 different products for the chemic industry. The integrated installation employs astir 1,800 people.

BP predicts that the workforce, including those successful logistics and income support, volition determination to the caller proprietor aft completion.

Klesch Group president A. Gary Klesch said: “Our strategy is built astir the long‑term stewardship of high‑quality refining assets. Gelsenkirchen Refinery fits wrong that imaginativeness and provides a beardown instauration for sustainable worth creation.

“We privation employees to cognize that their expertise remains cardinal to the refinery’s aboriginal success, and we are committed to forging beardown partnerships with some them and the works council.”

The woody volition region liabilities related to Gelsenkirchen from bp’s equilibrium sheet, including pension obligations and different provisions.

The merchantability contributes to bp’s program to little its refining currency breakeven constituent by astir $3 per tube by 2027 compared with 2024 connected a like-for-like basis.

As noted successful its 4th fourth 2025 results connected 10 February 2026, bp had announced oregon completed much than $11bn of its planned $20bn divestment programme targeted for completion by 2027.

BP interim CEO Carol Howle said: “With this transaction, we are strengthening our equilibrium sheet, expanding our structural outgo simplification people and expanding the resilience of our focused refining portfolio.