BP, Rosneft to restructure German refining JV

BP and Rosneft have agreed to pursue a reorganization of their refining joint venture in Germany, Ruhr Oel GMBH, the companies confirmed on Monday.

Rosneft would double its minority shares in three refineries: Bayernoil, MiRO, and PCK Raffinerie. Meanwhile, BP would own 100% of the Gelsenkirchen refinery and the DHC Solvent Chemie solvent production facility.

“Our sole ownership of the Gelsenkirchen refinery will re-focus our refining business in the heart of Europe and is in line with our drive for greater simplification and efficiency," said David Campbell, president of BP Russia.

The deal was among several agreements signed by Rosneft and BP at the St. Petersburg International Economic Forum. 

The closing of the deal is subject to conditions including regulatory approvals. Officials with both companies say the restructuring of the Ruhr Oel GmbH venture will enable Rosneft and BP to re-focus their refining and petrochemicals strategies in Germany.

“This agreement demonstrates Rosneft’s shift to a fundamentally new level of operations in Western Europe and confirms the company’s commitment to the creation of the most efficient marketing structure, aimed at the creation of additional value for our shareholders," said Igor Sechin, chairman of the Rosneft board. 

"We are thankful to BP, our strategic partner, for the lessons learned during our joint work within ROG and their support for our new beginnings," he added.