BP has completed the sale of its Gelsenkirchen refinery and related businesses in Germany to Klesch Group. The transaction supports BP’s effort to simplify its portfolio, strengthen its balance sheet and direct capital toward assets and markets where it believes it can generate stronger returns.
BP expects the transaction to help lower its underlying operating expenses by approximately $1 billion. Based on the refinery’s historical performance, the sale is also expected to be accretive to free cash flow.
Klesch Group will assume the assets and liabilities associated with the refinery. Employees at Gelsenkirchen and the related businesses have also transferred to Klesch as part of the transaction.
BP determined that a new owner would be better positioned to support the refinery’s long-term future. Gelsenkirchen supplies fuels and petrochemicals to customers throughout western Germany.
Following the sale, BP retains five refineries serving important markets across its downstream business. These include Cherry Point and Whiting in the United States, along with Castellón, Lingen and Rotterdam in Europe.
BP will continue serving customers in Germany through its remaining businesses, including the Aral fuel and convenience retail network.
KEY QUOTES:
“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.”
Richard Harding, Interim Executive Vice President of Downstream at BP
“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.”
Patrick Wendeler, Head of Country for Germany at BP
