Indian-based Essar Energy's UK subisidiary has bought the Shell Stanlow refinery for $1.3bn.
Essar Oil (UK) clinched the deal after starting negotiations at the beginning of March, with the final sum appearing fractionally higher than the $1.1bn originally suggested. The sale includes oil and chemical products as well as some terminal property, commercial, bulk and local marine fuels.
An exclusive two-way supply deal has also been agreed to provide Shell crude to the refinery in return for UK product supply by Essar to Shell. The deal does not include other aspects of Shell's UK business including retail sites, lubes marketing, marine lubes, commercial road transport and bitumen marketing businesses.
Stanlow produces some 4,000m litres of vehicle fuel and 15,000m litres of kerosene annually, handling 12m tonnes of predominantly North Sea crude and employing 800 people on site.
Essar Energy also has a major refinery at Vadinar in Gujarat, India, the second largest private sector refinery in the country and is set go expand to an annual capacity of 38m tonnes of Euro IV and V fuels annually. In addition, Essar has a share in the Kenya Petroleum Refineries Ltd (KPRL) plant in Mombasa, Kenya.