bp sells Gelsenkirchen refinery to Klesch Group
- bp has completed the sale of the Gelsenkirchen refinery and related businesses to Klesch Group.
- The transaction is expected to lower bp's underlying operating expenditure by around $1 billion.
- Based on historical performance the deal is free cash flow accretive and transfers the associated assets and liabilities to Klesch.
- Employees at the refinery and associated businesses have transferred to Klesch Group; bp retains five refineries including Cherry Point, Whiting, Castellón, Lingen and Rotterdam.
Deal completed and strategic intent
bp has completed the sale of the Gelsenkirchen refinery and related businesses to Klesch Group. bp said the transaction supports its focus on disciplined capital allocation and simplifies its portfolio so it can concentrate capital on assets and markets where it can be most competitive.
Financial and operational effects
The sale is expected to lower underlying operating expenditure by around $1 billion. Based on historical performance the transaction is free cash flow accretive and transfers the associated assets and liabilities to Klesch Group.
Customers, workforce and local supply
bp noted Gelsenkirchen plays an important role in supplying western Germany with fuels and petrochemicals. Employees at the refinery and in the associated businesses have transferred to Klesch Group, and bp said Klesch is well placed to take the refinery into its next chapter. bp will continue to support customers in Germany through its businesses, including Aral.
Remaining downstream footprint
Following the sale bp retains a refining portfolio of five refineries serving key customers and markets across its downstream business, including Cherry Point and Whiting in the United States, and Castellón, Lingen and Rotterdam in Europe.
Source: bp