BP is still in preliminary discussions to sell its Gelsenkirchen oil refinery in Germany to the investment firm Klesch Group. The marketing of the refinery began in February 2025, and the talks are still in the early stages a year later, indicating a protracted sale process that has yet to reach a definitive agreement.
The Gelsenkirchen site, operated under the Ruhr Oel brand, processes roughly 12 million tonnes of crude per year. BP had announced plans to cut its crude throughput at the refinery by about one‑third from 2025, citing weaker demand and high structural costs. The refinery’s location on the Rhine and its integration with BP’s European supply chain make it a key asset, but its declining economics have prompted the divestiture.
Klesch Group already owns the Heide refinery in Germany and the Kalundborg refinery in Denmark. By acquiring Gelsenkirchen, Klesch would consolidate its European refining footprint, potentially achieving cost synergies and expanding its product mix. The group’s interest reflects a broader strategy of building a competitive, integrated refining network across the continent.
BP’s decision to sell Gelsenkirchen fits into a broader portfolio‑optimization program announced in early 2025. The company had earmarked $3‑4 billion in asset sales for 2025 and is preparing to release its full‑year 2025 results on February 10, 2026. BP’s 2024 earnings were weaker than expected, and the sale is intended to raise cash, reduce debt, and free capital for upstream and low‑carbon investments that the company has identified as higher‑return growth engines.
Management has emphasized that a new owner would be a better fit for the site. Executive Vice President of Customers and Products Emma Delaney said the refinery’s future would be better served under a company with a focused refining strategy, while CEO Murray Auchincloss highlighted the need to accelerate portfolio simplification and focus on more profitable segments. The sale is part of BP’s broader “reset” to streamline operations and improve long‑term value.
The market has not yet reported a reaction to the ongoing talks, and no specific deal terms or valuation have been disclosed. The continued negotiations underscore BP’s commitment to its strategic shift and its willingness to pursue long‑term asset sales to support its transition goals.
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