BP has announced an agreement to sell its Gelsenkirchen refinery to Klesch Group in what it has called “another significant milestone” in strengthening its balance sheet.
The oil and gas major said the terms of the deal were confidential, but said it was now targeting even more costs reductions by 2027 despite the sale of the German shaving off around $1 billion of underlying operating expenditure.
BP said it is now aiming for $6.5 to $7.5 billion of structural cost reductions by 2027, up from the $5.5 to 6.5bn target announced just a few months ago at its 2025 results in February.
Then BP said then it was more than halfway to a $20bn target for asset sales, which included its sale of a 65% share in its Castrol business to US investment giant Stonepeak and the completion a deal to sell off its stake in the Culzean gas field in the North Sea to Neo Next.
The deal shifts a workforce in Germany of around 1,800 people to the new owners.
BP said the expected savings from the sale associated with Gelsenkirchen included “pension obligations, provisions, and other short-term liabilities”.
The deal comes just weeks ahead of the arrival of new CEO Meg O’Neill who comes in 1 April.
Full story BP sells off German refinery
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