Who is A. Gary Klesch, and what does BP’s sale of the Gelsenkirchen refinery mean for his company’s position in Germany’s oil refining industry?

A. Gary Klesch is an American investor who, over three decades, has acquired struggling industrial assets—including steel mills, aluminum smelters, chemical plants, and oil refineries—betting he could extract value from businesses their prior owners abandoned. With the acquisition of BP Plc’s Gelsenkirchen refinery, Klesch Group Ltd has become Germany’s second-largest oil refiner and the biggest shareholder in one of the country’s most important crude oil pipeline networks.

Why are major oil companies like BP selling off European refineries, and what financial and environmental benefits do such sales offer?

Major oil companies like BP, Shell, and Exxon Mobil are reassessing their European refining portfolios because aging plants are increasingly expensive to maintain and tougher environmental regulations raise compliance costs; unexpected disruptions like fires further strain operations. BP expects to save up to $1 billion annually in operating costs from selling the Gelsenkirchen facility, and such sales also eliminate the largest CO2 footprint from a company’s balance sheet.

BP Sale Makes US Investor Germany’s Second-Largest Oil Refiner

Aug 7, 2026

Klesch Group acquires BP's Gelsenkirchen refinery, becoming Germany's second-largest refiner. The deal secures fuel supply for the regional chemical industry but raises concerns regarding energy security and transparency.

bloomberg

2026-08-07

BP Sale Makes US Investor Germany’s Second-Largest Oil Refiner

BP Sale Makes US Investor Germany’s Second-Largest Oil Refiner

FAQ