BASF Sells Oil & Gas Unit, Shifts Strategy with Major Investments

BASF has enacted sweeping strategic changes, simultaneously shedding legacy assets and funneling capital into new growth areas. The German chemicals giant completed the sale of its oil and gas exploration business (Wintershall Dea’s E&P unit) in August, a divestment affecting about 800 employees and yielding over ¥100 billion in cash proceeds . BASF plans to reinvest this windfall into major projects, notably its new €10 billion integrated Verbund site in Zhanjiang, China, and expansions in battery materials and green energy . In tandem, BASF signed a memorandum of understanding with China’s Fourier Intelligent to co-develop new materials for next-generation humanoid robots, signaling a push into high-tech specialty products.

These moves come as BASF aggressively streamlines operations to cut costs amid a tough global market. Over the past year, the company has shut down multiple production units in Europe (including several at its Ludwigshafen flagship site) and even exited a chemical joint venture in Xinjiang, China. BASF’s CEO Martin Brudermüller noted that more plant closures in Germany are possible as part of an ongoing efficiency program. By pruning lower-margin businesses and doubling down on innovation and Asian growth projects, BASF is repositioning itself for long-term profitability despite near-term headwinds of overcapacity and fierce competition in China.