bp sells Gelsenkirchen refinery to Klesch Group bp has finalized a definitive agreement to sell its Gelsenkirchen refinery in Germany to the Klesch Group, an independent operator with extensive experience in European refining. This transaction is part of bp’s broader strategy to streamline its asset portfolio, reduce operational costs, and focus on higher-margin integrated businesses. The sale aims to strengthen the company’s financial position by 2027, with specific targets aligned to long-term cost-reduction goals. The deal involves the transfer of the refinery’s physical infrastructure, along with a comprehensive clean-up of bp’s balance sheet. This includes obligations such as provisions, pensions, and other short-term liabilities tied to the German site. By divesting these assets, bp seeks to lower its refining cash flow breakeven by $3 per barrel, creating a more resilient structure against global market fluctuations. The move also contributes to a direct savings of approximately $1 billion in operating expenses previously associated with the Gelsenkirchen plant. The sale is expected to be completed in the second half of 2026, following the receipt of necessary regulatory approvals. From the first quarter of this year, the refinery’s assets and liabilities will be classified as held for sale. This step underscores bp’s commitment to simplifying its operations, removing unnecessary complexity, and prioritizing the resilience of its specialized refining business. Klesch Group will assume control of a facility that processes around 12 million tonnes of crude annually. The acquisition includes the Bottrop tank farm and the subsidiary DHC Solvent Chemie GmbH.#bp #klesch_group #gelsenkirchen_refinery #bottrop_tank_farm #dhc_solvent_chemie_gmbh
