News
BP · Cost Cutting · Portfolio Optimization · Refinery Sale
BP announced the sale of its Gelsenkirchen refining site in Germany, including DHC Solvent Chemie GmbH and related assets, as part of CEO Murray Auchincloss's strategy to cut costs by at least $2 billion by the end of 2026.
The divestment aims to position BP as a "simpler, more focused, higher-value company" and address investor concerns regarding its energy transition strategy. The Gelsenkirchen refinery, with a processing capacity of 12 million tons of crude oil per year, had already seen plans to reduce capacity by one-third due to a weaker demand outlook.
BP took a significant $1.34 billion impairment on the refinery in 2023. The company plans to finalize sales agreements by 2025, maintaining normal operations in the interim.
This move comes as global refiners face a downturn in profit margins, and BP's shares reacted positively, rising 2.5% following the announcement.
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