BP has agreed to sell its Gelsenkirchen refinery in Germany, along with the Bottrop tank farm, the DHC Solvent Chemie chemical subsidiary, and its interests in logistics joint ventures and unbranded fuel marketing operations, to the Klesch Group. The transaction will transfer roughly 1,800 employees to Klesch and is expected to close in the second half of 2026 after regulatory and governmental approvals.
The divestiture lifts BP’s structural cost‑reduction target to between $6.5 billion and $7.5 billion by 2027, an increase of about $1 billion over the target set earlier in 2026. The sale is projected to deliver approximately $1 billion in underlying operating‑expenditure savings each year, representing roughly 30 % of BP’s 2023 cost baseline. In addition, BP expects the transaction to lower its refining cash breakeven by about $3 per barrel by 2027 compared with 2024 on a like‑for‑like portfolio basis.
BP’s strategy is to strengthen its balance sheet and focus on higher‑margin upstream and downstream assets. By removing a lower‑margin refining operation, BP is simplifying its portfolio and accelerating progress toward its $20 billion divestment program by 2027, of which more than $11 billion has already been announced or completed in 2025.
"With this transaction, we are strengthening our balance sheet, increasing our structural cost reduction target, and increasing the resilience of our focused refining portfolio. We will continue to take decisive action to reduce portfolio complexity – with a continued focus on growing cash flow and returns and delivering value for our shareholders," said Carol Howle, interim CEO at BP. "We have a long history of operating successful assets and brands in Germany, and we are deeply grateful for the refinery's decades of contribution to our business. We are confident that Klesch Group's experience in refining makes them the right owner for Gelsenkirchen's next chapter," added Patrick Wendeler, head of country for Germany at BP. "Our strategy is built around the long‑term stewardship of high‑quality refining assets. Gelsenkirchen Refinery fits within that vision and provides a strong foundation for sustainable value creation. “We want employees to know that their expertise remains central to the refinery's future success, and we are committed to forging strong partnerships with both them and the works council," said Gary Klesch, chairman of the Klesch Group.
The sale reflects broader consolidation trends in the European refining sector, where volatile margins, rising compliance costs, and the energy transition are prompting companies to rationalize assets. Gelsenkirchen had previously announced capacity reductions and biofuel co‑processing initiatives, underscoring the challenges it faced. The transaction aligns with BP’s broader pivot toward integrated downstream businesses and higher‑margin operations.
The deal is subject to regulatory and governmental approvals and is expected to close in the second half of 2026. The transfer of 1,800 employees to Klesch will be managed to preserve continuity of operations and expertise at the refinery.
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