BP has announced the completion of the sale of its Gelsenkirchen refining and petrochemical complex and related businesses in Germany to Klesch Group. The completion follows BP’s divestment plan announced in March, and is part of BP’s strategy to simplify its downstream portfolio.
The divested assets comprise the integrated refining and petrochemical complex at Gelsenkirchen, consisting of the Horst and Scholven sites, along with the Bottrop tank farm. The refinery processes approximately 12 million tonnes of crude oil per year, with a crude distillation capacity of 265,000 barrels per day, producing petrol, diesel, jet fuel, heating oil and more than 50 other products supplied primarily to the chemical industry, it is reported. Employees at the refinery and associated businesses have transferred to Klesch Group as part of the transaction.
BP said the sale strengthens its balance sheet and continues its downstream strategy of concentrating capital on the assets and markets where it can be most competitive. The buyer, Klesch Group, is an independent refiner founded in 1990 that already operates the Heide refinery in Germany (acquired from Shell in 2010) and the Kalundborg refinery in Denmark (acquired from Equinor in 2022), and this acquisition adds to its German refining assets.
Implications for Korea’s Industry
Direct involvement by Korean companies has not been confirmed. As major global refiners continue to restructure their European refining assets, Korea’s refining and petrochemical industry may want to monitor the resulting changes to European supply chains.
Key items to watch include how Klesch Group’s operating strategy for the Gelsenkirchen complex evolves after the acquisition, and whether BP pursues further downstream portfolio restructuring.