BP Plc plans to promote oil refining and chemical property in Germany, as the corporate scales again operations within the nation resulting from excessive prices.
The method, which includes the potential sale of a refinery in Gelsenkirchen and the DHC Solvent Chemie GmbH chemical plant in Mülheim an der Ruhr, will start instantly with an purpose of concluding the gross sales settlement this 12 months, based on an organization assertion. The timing of the handover to a brand new proprietor will rely on regulatory approvals and operations will proceed as ordinary in the course of the gross sales course of.
European refiners face growing competitors from gas imports originating within the Center East and Asia, the place capability is being elevated. The continent’s gas and chemical producing websites have been notably hobbled by greater pure gasoline costs and carbon levies relative to different elements of the world, sparking a wave of closures and gross sales. Slumping gas margins within the fourth quarter led to disappointing earnings outcomes final week for the world’s oil supermajors as a flood of recent output competes with stagnating demand.
- Advertisement -
The Gelsenkirchen website has the capability to course of 240,000 barrels a day of crude, and is Germany’s third largest refinery.
BP isn’t the one oil main making an attempt to promote out of refining property in Germany. Shell Plc has been making an attempt to promote its stake within the Schwedt plant, whereas Exxon Mobil Corp was in superior talks with shareholders final 12 months to pave the best way for its sale of a stake in Germany’s second-largest refinery.
BP beforehand mentioned it deliberate to cut back operations at Gelsenkirchen resulting from excessive prices on the website and people plans will proceed, BP Spokesman David Nicholas mentioned on Thursday.
The sale comes as BP just lately introduced widespread job cuts with CEO Murray Auchincloss shedding initiatives that don’t generate profits or match into his plans to show the corporate round. In a technique replace later this month, Auchincloss will unveil his general imaginative and prescient for the corporate. Forward of that, BP will launch its fourth quarter earnings on Tuesday.
Generated by readers, the feedback included herein don’t mirror the views and opinions of Rigzone. All feedback are topic to editorial evaluate. Off-topic, inappropriate or insulting feedback shall be eliminated.
MORE FROM THIS AUTHOR
Bloomberg
