Finance
BP puts German refinery up for sale
Published by Global Banking & Finance Review®
Posted on February 6, 2025
2 min readLast updated: January 26, 2026
Quick Summary
BP plans to sell its Gelsenkirchen refinery in Germany as part of a $2 billion cost-cutting strategy. The sale includes related assets and aims to finalize by 2025.
BP Announces Sale of Gelsenkirchen Refinery in Germany
(Reuters) -BP plans to sell its BP Gelsenkirchen refining site in Germany, it announced on Thursday, as CEO Murray Auchincloss pushes on with plans to cut costs by at least $2 billion.
"BP needs to continually manage its global portfolio as we position to grow as a simpler, more focused, higher-value company," Emma Delaney, BP's EVP of customers and products unit, said in a statement.
BP had previously announced plans to reduce crude processing capacity at the Gelsenkirchen refinery from this year by around one-third due to a weaker demand outlook.
BP Europa SE plans to sell the site, formally named Ruhr Oel GmbH (ROG) – BP Gelsenkirchen, along with related assets including DHC Solvent Chemie GmbH, a specialised solvent products manufacturer.
The refinery, built in 1935, includes two plants and a petrochemical site, and has a processing capacity of around 12 million tons of crude oil per year.
Auchincloss said last year said he would cut the British company's costs by at least $2 billion by the end of 2026 to boost returns and address investor concerns over its energy transition strategy.
BP shares were up 2.5% in afternoon trading.
Other global refiners in January offered little optimism in a near-term improvement in profit after a downturn in margins on producing fuel.
ROG fully owns DHC Solvent Chemie and holds stakes in the Maatschap Europoort Terminal and a crude oil and products pipeline in the Netherlands.
BP aims to finalise sales agreements by 2025 and will maintain normal operations at the refinery in the meantime.
BP took a $1.34 billion impairment on the Gelsenkirchen refinery in 2023 due to "changes in economic assumptions".
(Reporting by Yamini Kalia, Yadarisa Shabong and Arunima Kumar in Bengaluru; editing by Vijay Kishore, David Evans and Jason Neely)
Key Takeaways
- •BP plans to sell its Gelsenkirchen refinery in Germany.
- •The sale is part of a $2 billion cost-cutting strategy.
- •BP aims to finalize sales agreements by 2025.
- •The refinery's capacity is around 12 million tons per year.
- •BP took a $1.34 billion impairment on the refinery in 2023.
Frequently Asked Questions about BP puts German refinery up for sale
1What is the main topic?
The main topic is BP's announcement to sell its Gelsenkirchen refinery in Germany as part of a cost-cutting strategy.
2Why is BP selling the refinery?
BP is selling the refinery to cut costs by at least $2 billion and to streamline its global portfolio.
3What are the financial implications?
BP took a $1.34 billion impairment on the refinery and aims to boost returns by reducing costs.
