Klesch Group Acquires BP's Gelsenkirchen Refinery, Becomes Germany's Second-Largest

The Klesch Group, led by American investor A. Gary Klesch, has become a significant player in the German oil refining market following its acquisition of BP's Gelsenkirchen refinery and associated businesses in Germany. The deal, completed on August 3, 2026, positions Klesch Group as Germany's second-largest oil refiner and the largest shareholder in one of the country's crucial crude oil pipeline networks.

The acquisition encompasses the Horst and Scholven refinery sites, along with the Bottrop tank farm and the DHC Solvents business. The Gelsenkirchen refinery boasts an annual crude oil processing capacity of approximately 12 million metric tons and a crude distillation capacity of 265,000 barrels per day. The facility produces essential fuel products such as gasoline, diesel, jet fuel, and heating oil, in addition to over 50 petrochemical products primarily for the chemical industry. This refinery plays a vital role in supplying western Germany with fuels and petrochemicals and provides jet fuel for Düsseldorf airport.

For BP, this sale is a key part of its strategy to streamline its downstream portfolio, strengthen its balance sheet, and focus on disciplined capital allocation, expecting to reduce underlying operating expenditure by around $1 billion. BP had announced its intention to sell the refinery on March 19, 2026, concluding that a new owner would be better positioned to support the refinery's long-term future. Following this divestment, BP retains five refineries within its global portfolio. While the financial terms of the deal were not disclosed, BP indicated that the sale is free cash flow accretive and transfers associated assets and liabilities, including pension obligations, to Klesch Group.

Klesch Group has a three-decade history of acquiring and revitalizing distressed industrial assets, including steel mills, aluminum smelters, chemical plants, and oil refineries. The Gelsenkirchen refinery is a significant addition to Klesch's expanding European refining portfolio, which already includes the Heide Refinery in Germany (acquired from Shell in 2010) and the Kalundborg Refinery in Denmark (acquired from Equinor in 2022). Through these strategic acquisitions, Klesch continues to play a crucial role in ensuring the energy security of critical fuel supplies in Germany and Denmark.

European refiners have experienced unusually profitable periods since the conflict in Ukraine disrupted fuel markets and reduced Russian exports. This has underscored the strategic importance of Europe's refining sector. The integration of the Gelsenkirchen refinery into the Klesch Group is also significant for Germany's energy supply security. Over 1,700 employees at the refinery transferred to the new owner as part of the transaction. Analysts suggest that Klesch Group's proven track record in successfully restructuring such assets bodes well for the long-term sustainability of the Gelsenkirchen refinery.