BP Sells Gelsenkirchen Refinery to Klesch Group

Portfolio Overhaul BP to Sell Gelsenkirchen Refinery to Klesch Group

2026-03-20 Source: Press release BP 1 min Reading Time

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With the planned sale of its Gelsenkirchen refinery to Klesch Group, BP is accelerating its strategic realignment in Europe. The deal supports the company’s efforts to streamline its portfolio, reduce costs and strengthen its focus on integrated downstream businesses.

Energy company BP reached an agreement to sell its Gelsenkirchen (Germany) refinery and related businesses to Klesch Group, an independent European refiner. The transaction is part of the company’s acceleration of its strategy, including simplifying the portfolio, strengthening the balance sheet and focusing the downstream on its integrated businesses. Subject to conditions including regulatory and governmental approvals, the transaction is expected to close in the second half of 2026.

The Gelsenkirchen refinery primarily manufactures fuels for vehicles and aircraft, processing roughly 12 million tonnes of crude oil per year. The refinery also supplies essential feedstocks to the petrochemical industry in Germany and across Europe. The deal includes Gelsenkirchen refinery and Bottrop tank farm; DHC Solvent Chemie (a subsidiary); interests in logistics joint ventures; and marketing businesses related to petrochemicals and unbranded B2B fuels produced at the Gelsenkirchen refinery. To maintain BP’s regional supply requirements, the company has agreed offtake arrangements covering ground fuels, aviation fuel and coke.

The workforce, as well as those supporting logistics and sales infrastructure, are expected to join the new owner’s workforce upon completion of the deal. Today, the integrated refinery complex employs around 1,800 people.

BP is now targeting 6.5 to 7.5 billion dollars of structural cost reductions by 2027, reflecting the expected savings of around 1 billion dollars of underlying operating expenditure associated with Gelsenkirchen. The 2027 cost reduction target now equates to around 30 % of of its 2023 cost baseline. This marks the second time BP has increased its target, having outlined 4 to 5 billion dollars of savings in February 2025, and increased this in February 2026 to 5.5 to 6.5 billion dollars reflecting the outcome of the strategic review of Castrol.

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