bp to sell Gelsenkirchen refinery to Klesch Group
- bp agreed to sell the Gelsenkirchen refinery and related assets (including Bottrop tank farm and DHC Solvent Chemie) to Klesch Group; closing expected H2 2026 subject to approvals.
- The complex processes ~12 million tonnes crude/year (265,000 bpd), supplies fuels and petrochemical feedstocks, and employs ~1,800 people.
- Deal removes associated liabilities, is free-cash-flow accretive, yields ~ $1bn underlying opex savings and raises bp's 2027 structural cost-reduction target to $6.5–7.5bn while helping lower refining cash breakeven by ~$3/bl.
Transaction summary
bp agreed to sell its Gelsenkirchen refinery and related businesses to Klesch Group, transferring the refinery, Bottrop tank farm, DHC Solvent Chemie GmbH, interests in logistics joint ventures and marketing businesses for petrochemicals and unbranded B2B fuels.
Financial impact
The deal is free-cash-flow accretive based on historical performance, removes liabilities (including pension obligations and provisions), strengthens the balance sheet and yields around $1bn of underlying opex savings associated with Gelsenkirchen, prompting bp to raise its 2027 structural cost-reduction target to $6.5–7.5bn.
Operational details
The integrated complex processes about 12 million tonnes of crude per year (265,000 bpd), producing petrol, diesel, jet fuel, heating oil and more than 50 other products, and supplies petrochemical feedstocks; the site currently employs roughly 1,800 people who are expected to join the new owner.
Portfolio and accounting effects
From 1Q26 bp will reclassify the assets and liabilities (excluding working capital) to Assets Held for Sale and Liabilities directly associated with assets held for sale, ceasing associated reported cash capex and depreciation and amortisation; transaction proceeds and transferred liabilities remain subject to customary closing adjustments, including inventory valuation.
Timeline and supply arrangements
Subject to regulatory and governmental approvals, completion is expected in H2 2026; bp has agreed offtake arrangements to maintain regional supply of ground fuels, aviation fuel and coke.
Source: bp