The divestment aligns with BP’s strategy to streamline operations and reduce underlying operating expenditure by approximately $1 billion.
BP finalized the sale of its Gelsenkirchen refinery in Germany to Klesch Group, marking a key step in its portfolio optimization. The deal, first announced in March, is expected to cut BP’s underlying operating costs by around $1 billion while improving free cash flow accretion.
The transaction includes the refinery’s Horst and Scholven sites, a 265,000-barrel-per-day refining complex, and the Bottrop tank farm. The facility processes roughly 12 million tonnes of crude oil annually, producing fuels and petrochemical feedstocks. BP stated the new owner is better positioned to manage the asset’s long-term operations.
BP’s interim downstream chief, Richard Harding, said the sale strengthens the company’s balance sheet and sharpens its focus on high-competitive markets. Financial terms remain undisclosed, but the deal transfers associated liabilities, including pension obligations, to Klesch Group.