Refinery Acquisition Essar Expands Business in Great Britain, India and Africa
British/Indian Essar Energy expands its business: the acquisition of Great Britain's second largest refinery is the latest investment of several expansion projects in the UK, India and Africa.
Mumbai/India – Essar Energy has finished the acquisition of a British refinery. The former Shell facilities at Stanlow, Ellesmere Port, Cheshire, including oil refinery and other associated assets were acquired for US $ 350 millions. The refinery is, according to Essar, the second largest of its kind in the UK and processes up to 296,000 barrels of oil per day. Supplied by the Tranmere Oil Terminal on the River Mersey, the facilities produce approximately one sixth of the UK’s petrol, as well as being a key manufacturer of diesel and aircraft fuel.
Naresh Nayyar, Essar Energy’s chief executive, said: “We are very pleased to have completed the acquisition of Stanlow, which is a high quality refinery and is an excellent fit with our refining strategy. It takes us substantially closer to our objective of a global refining capacity of one million barrels daily. We look forward to making some operational improvements which will optimise production at Stanlow.”
With the acquisition of the Stanlow refinery Essar aims for direct access on the UK market. It is also aligned with Essar Energy’s strategy to provide options for the export of high value fuel products from its refinery at Vadinar, in Gujarat state, India. Vadinar currently has a capacity of 300,000 barrels a day and this will be increased to 375,000 bpd under a phase I expansion plan, due to be completed by the end of this year, and to 405,000 bpd by September 2012 under a further optimisation project. Essar also owns a 50 percent share in Kenya Petroleum Refineries in Mombasa, Kenya, with a capacity of 80,000 barrels per day.