LONDON (dpa-AFX) - BP PLC (BP, BP_UN.TO, BP.L, BPE5.DE) said on Thursday that it has inked a deal with Klesch Group, a European oil refiner, to sell its Gelsenkirchen refinery and related businesses for an undisclosed sum.
'The transaction represents another significant milestone in bp's acceleration of its strategy, including simplifying the portfolio, strengthening the balance sheet, and focusing the downstream on its leading integrated businesses,' the company said.
With this, BP now expects $6.5 billion to $7.5 billion of structural cost reductions by 2027, reflecting the expected savings of around $1 billion of underlying operating expenses associated with Gelsenkirchen. Earlier, the oil major was expecting cost reductions of $5.5 billion to $6.5 billion by 2027.
The transaction is expected to be closed in the second half of 2026.
The Germany-based Gelsenkirchen refinery mainly provides fuels for vehicles and aircraft, processing around 12 million tons of crude oil per year. The refinery also supplies essential feedstocks to the petrochemical industry.
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