Essar in race to buy Shell refinery
London/New Delhi, Aug. 9, 2009 (PTI): The Essar group is in the race to acquire Britains second-largest oil refinery, Shells Stanlow complex, according to TheSunday Times. Shell hopes to pocket up to 1.5 billion from the sale, the report said.
The Stanlow complex in Cheshire (North West England) produces a sixth of UKs petrol and is being sold along with two German refineries at Heide and Harburg.
Among the bidders are Libyas National Oil Corporation and Essar the mobile-phone-to-shipping conglomerate owned by the billionaire Ruia brothers, Ravi and Shashi, TheSunday Times said.
However, Essar officials were not available for comment.
The daily further said, American refining giant Valero and an investment vehicle controlled by the Saudi royal family are also expected to make offers.
The auction is being run by Lazard, and the final bids are due on August 17.
Shell has put its Stanlow complex up for sale as it tries to rein in its huge cost base and struggles with the effects of an oil price that is half the level of the historic high hit last year.
Shell last month reported a sharp fall in profits, and its chief executive Peter Voser had launched an efficiency drive that was expected to cost thousands of jobs.
The involvement of Essar and the Libyans reflect a wider interest by groups that produce oil and want to break into the European market.
Stanlow, which employs more than 800 people, has seen much controversy recently. Next week, construction engineers will be balloted on strike action over pay, and it has also been targeted by fuel protesters over petrol prices, The Sunday Times said.
Environment pact
Essar Steel has entered into a Rs 300-crore deal with Denmark-based Nordjysk Elhandel for selling credits to lower greenhouse gases over 10 years.
The agreement was signed last week and was facilitated by the Danish embassy in Delhi.
Essar Steel will get money for employing energy efficient and green technologies in their businesses through this transaction.
