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Ruias-owned Essar Oil announced acquisition of 50 per cent stake in a 4 million tonnes oil refinery in Kenya.
The company acquired 50 per cent stake of western energy majors Shell BP and Chevron in Kenya Petroleum Refineries Ltd,Essar said in a press release.
The company,however,did not give the acquisition price.
The acquisition was done through Essar Energy Overseas Ltd. The Government of Kenya holds the remaining 50 per cent stake in the company.
KPRL is a 4 million metric tonne (MMTPA) per annum refinery in Mombasa,Kenya.
“This acquisition marks Essars foray in overseas refining market and is a step towards realising its vision of a global refining capacity of 1 million barrels per day,” the release said.
Essar Oil operates a 2,80,000 bpd refinery at Vadinar in Gujarat. This refinery capacity is being expanded to 3,20,000 bpd by 2010 and then to 7,00,000 bpd by 2011.
Commenting on the acquisition,Essar Group Chairman Shashi Ruia said: “This is an excellent addition to our oil assets and fits well with the Groups strategy of building and becoming a global oil and gas player. This will further enhance our presence in the growing African market.”
