- bp has completed the sale of Gelsenkirchen refinery and related businesses to Klesch Group.

The transaction supports bp’s continued focus on disciplined capital allocation and is also expected to lower underlying operating expenditure by around $1 billion.

Richard Harding, interim executive vice president of Downstream at bp, said: “This deal strengthens our balance sheet and simplifies our portfolio. By concentrating our capital on the assets and markets where bp can be most competitive, we are building a higher-value, more resilient downstream business that continues to supply the fuels and products our customers rely on.”

Based on historical performance, the transaction is free cash flow accretive and transfers the associated assets and liabilities to Klesch Group.

Patrick Wendeler, head of country for Germany at bp, added: “Gelsenkirchen plays an important role in supplying western Germany with fuels and petrochemicals. With its refining experience and established presence in Germany, Klesch Group is well placed to take Gelsenkirchen into its next chapter. bp will continue to support customers in Germany through its businesses, including Aral.”

The sale follows bp’s conclusion that a new owner would be better placed to take the refinery forward to support its long-term future. Employees at the refinery and in the associated businesses have transferred to Klesch Group as part of the transaction.

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.

About bp

bp (NYSE: BP, LSE: BP.L) is one of the world's largest oil and gas companies, serving millions of customers every day in more than 80 countries, and employing nearly 85,000 people. BP's business segments are oil and gas exploration & production, and refining & marketing. In alternative energies, BP has low- and no-carbon wind and biofuels businesses. Through these activities, BP provides fuel for transportation; energy for heat and light; services for motorists; and petrochemicals products for plastics, textiles and food packaging. It has strong positions in many of the world's hydrocarbons basins and strong market positions in key economies.

About Klesch Group

- Klesch is a leading independent refiner focused on delivering operational excellence. Established in 1990 by Founder and Chairman A. Gary Klesch, the organisation employs approximately 1,000 people.
- The company’s asset portfolio includes the Heide Refinery in Germany, acquired from Shell in 2010, and the Kalundborg Refinery in Denmark, acquired from Equinor in 2022.
- Klesch plays a strategically important role in supporting the security of critical fuel supply and transportation energy needs across Germany and Denmark.
- The company operates to the highest standards of safety, environmental stewardship, and regulatory compliance within some of Europe’s most highly regulated jurisdictions.
- The Klesch business is focused exclusively on refining. The refineries under its ownership consistently showcase safety, operational excellence, and efficiency through disciplined investment and continuous operational optimisation.