SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
19
March, 2026
BP p.l.c.
(Translation
of registrant's name into English)
1 ST JAMES'S SQUARE, LONDON, SW1Y 4PD, ENGLAND
(Address
of principal executive offices)
Indicate
by check mark whether the registrant files or will file
annual
reports
under cover Form 20-F or Form 40-F.
Form
20-F |X| Form 40-F
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Indicate
by check mark whether the registrant by furnishing the
information
contained
in this Form is also thereby furnishing the information to
the
Commission
pursuant to Rule 12g3-2(b) under the Securities Exchange Act
of
1934.
Yes No
|X|
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Exhibit
1.1
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bp to
sell Gelsenkirchen refinery to Klesch Group dated 19 March
2026
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Exhibit 1.1
bp further simplifies portfolio with agreement to sell
Gelsenkirchen refinery to Klesch Group
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Transaction
accelerates delivery of bp's strategy to simplify its portfolio and
focus the downstream on its leading integrated
businesses.
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Increases
bp's structural cost reduction target by around $1 billion to $6.5
to $7.5 billion by 2027.
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Deal
strengthens bp's balance sheet and creates a more resilient
refining portfolio.
Bochum/London, 19 March 2026 -
bp today reached an agreement to sell its Gelsenkirchen refinery
and related businesses to Klesch Group, an independent European
refiner. 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.
bp is now targeting $6.5 to $7.5 billion of structural cost
reductions by 2027, reflecting the expected savings of around $1
billion of underlying operating expenditure associated with
Gelsenkirchen. The 2027 cost reduction target now equates to around
30 percent of bp's 2023 cost baseline. This
marks the second time bp has increased its target, having outlined
$4 to $5 billion of savings in February 2025, and increased this in
February 2026 to $5.5 to $6.5 billion reflecting
the outcome of the strategic review of Castrol.
The transaction strengthens bp's balance sheet, is free cash flow
accretive based on historical performance and contributes to
lowering bp's cash breakeven for its retained refining portfolio.
In addition to the transfer of liabilities, transaction terms and
associated proceeds are subject to customary closing adjustments,
including for the
value of inventory at time of completion.
Carol Howle, interim CEO at bp, said: "With
this transaction, we are strengthening our balance sheet,
increasing our structural cost reduction target, and
increasing the resilience of our focused refining
portfolio. We will continue to take decisive
action to reduce portfolio complexity - with
a continued focus on growing cash flow
and returns and delivering value for
our shareholders."
Patrick Wendeler, head of country for Germany at bp,
added: "We
have a long history of operating successful assets and brands in
Germany, and we
are deeply grateful for the refinery's decades of contribution to
our business. We are
confident that Klesch Group's experience in refining makes them the
right owner for Gelsenkirchen's next chapter."
The Gelsenkirchen refinery primarily manufactures fuels for
vehicles and aircraft, processing roughly 12 million tonnes of
crude oil per year. The refinery also supplies essential feedstocks
to the petrochemical industry in Germany and across
Europe.
The deal includes Gelsenkirchen
refinery and Bottrop tank farm; DHC Solvent Chemie GmbH (a
subsidiary); interests in logistics
joint ventures; and marketing businesses related to petrochemicals
and unbranded B2B fuels produced at the Gelsenkirchen
refinery. To
maintain bp's regional supply requirements, bp has agreed offtake
arrangements covering ground fuels, aviation fuel and
coke.
The experienced workforce, as well as those supporting logistics
and sales infrastructure, are expected to join the new owner's
workforce upon completion of the deal. Today, the integrated
refinery complex employs around 1,800 people.
Subject to conditions including regulatory and governmental
approvals, the transaction is expected to close in the second half
of 2026.
-END-
Notes to editors
About the intended sale of Gelsenkirchen refinery operated by Ruhr
Oel GmbH (ROG):
●
bp
Gelsenkirchen (ROG) operates two sites in Horst and Scholven,
consisting of an integrated refining and petrochemical hub as well
as the Bottrop tank farm.
●
The
refinery processes approximately 12 million tonnes of crude oil per
year and has 265,000 barrels crude distillation capacity per day,
producing petrol, diesel, jet fuel, heating oil and more than 50
other products, primarily for the chemical industry.
●
Underlying
operating expenditure associated with Gelsenkirchen in 2025 is
around $1 billion.
●
As
published at bp's 4Q25 results on 10 February 2026, reflecting the
Castrol divestment, bp's structural cost reduction target was
increased by around $1.5 billion to $5.5 to 6.5 billion by 2027
against a 2023 baseline, and did not include any potential
additional cost savings from the intended sale of Gelsenkirchen
refinery.
●
Intended
sale removes liabilities from bp associated with the divestment of
Gelsenkirchen including pension obligations, provisions, and other
short-term liabilities.
●
Starting
from bp's 1Q26 results, the assets and liabilities relating to the
Gelsenkirchen refinery (excluding working capital) will be
reclassified to Assets Held for Sale and Liabilities directly
associated with assets held for sale. Associated reported
cash capex and depreciation and amortisation will cease as of the
reclassification.
●
As
published at bp's 4Q25 results, in 2025 bp has announced or
completed over $11 billion of its 2027 $20 billion divestment
program. Progress updates are provided at upcoming quarterly
results.
●
bp
is targeting to lower its refining cash breakeven by around $3 per
barrel by 2027 versus 2024 on a like-for-like portfolio
basis.
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The
terms of this deal are confidential.
About Klesch Group:
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Klesch
is a leading independent refiner focused on delivering operational
excellence. Established in 1990 by Founder and Chairman A. Gary
Klesch, the organisation employs approximately 1,000
people.
●
The
company's asset portfolio includes the Heide Refinery in Germany,
acquired from Shell in 2010, and the Kalundborg Refinery in
Denmark, acquired from Equinor in 2022.
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Klesch
plays a strategically important role in supporting the security of
critical fuel supply and transportation energy needs across Germany
and Denmark.
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The
company operates to the highest standards of safety, environmental
stewardship, and regulatory compliance within some of Europe's most
highly regulated jurisdictions.
●
The
Klesch business is focused exclusively on refining. The refineries
under its ownership consistently showcase safety, operational
excellence, and efficiency through disciplined investment and
continuous operational optimisation.
Cautionary statement
In order to utilize the 'safe harbor' provisions of the United
States Private Securities Litigation Reform Act of 1995 (the
'PSLRA'), bp is providing the following cautionary statement. This
press release contains certain forecasts, projections and other
forward-looking statements - that is, statements related to future,
not past, events and circumstances which may relate to one or more
of the financial condition, results of operations and businesses of
bp and certain of the plans and objectives of bp with respect to
these items. These statements are generally, but not always,
identified by the use of words such as 'will', 'expects', 'is
expected to', 'aims', 'should', 'may', 'objective', 'is likely to',
'intends', 'believes', 'anticipates', 'plans', 'we see' or similar
expressions. In particular, the following, among other statements,
are all forward-looking in nature: expectations in relation to the
timing and completion of the transaction described including the
outcome of regulatory and governmental approvals, expectations in
relation to underlying operating expenditure savings associated
with Gelsenkirchen and the outcome of the strategic review of
Castrol, and timing and expectations in relation to bp's structural
cost reduction primary target.
By their nature, forward-looking statements involve risk and
uncertainty because they relate to events and depend on
circumstances that will or may occur in the future and are outside
the control of bp. Actual results may differ from those expressed
in such statements, depending on a variety of factors including the
risk factors set forth in our most recent Annual Report and Form
20-F under 'Risk factors'. Our most recent Annual Report and Form
20-F is available on our website at www.bp.com, or can be obtained
from the SEC by calling 1-800-SEC-0330 or on its website at
www.sec.gov.
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
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BP
p.l.c.
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(Registrant)
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Dated: 19
March 2026
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/s/ Ben
J. S. Mathews
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Ben J.
S. Mathews
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Company
Secretary
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