Barclays to finance crude oil for Stanlow refinery
17 August 2012
Essar Oil UK has signed a three-year deal with Barclays Bank plc covering the supply of crude oil to its Stanlow oil refinery. The refinery chief executive, Volker Schultz, said this was one of a number of initiatives to make Stanlow more profitable in a challenging market.
Under the new arrangements, Barclays will hold the inventories of crude oil and petroleum products at Stanlow, and will supply crude to the refinery in line with requirements.
The deal allows Essar Oil UK to repay its existing working capital revolving credit facility, provided by 13 banks, and will reduce costs by reducing its crude oil inventory holdings as well as permitting greater operational flexibility.
Schultz said: “This transaction with Barclays is an important landmark step for Stanlow. We have built a strong working relationship with Barclays, allowing us to continue delivering a high level of service to our customers, but in a much more efficient manner. The change is fully in line with our strategy to maximise efficiency, to substantially improve margins and to ensure that the refinery can thrive in all market conditions.”
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