Essar Group to sell UK refinery
18 June 2014
India's Essar Group plans to sell the Stanlow refinery in Britain, three sources familiar with the matter told Reuters. Essar is seeking to raise $500-$600 million for the plant in the northwest of England, two of the sources said. However other refineries in the UK, including Murco's Milford Haven plant and earlier the Petroplus facility at Coryton, failed to find buyers.
A formal sales process will begin after all the requirements related to delisting Essar Energy from the London Stock Exchange are complete, according to the Reuters report.
Essar Energy initially purchased the Stanlow refinery from Shell in 2011 for $350 million. Earlier this year, the refinery reduced its output capacity to around 195,000 bpd from 296,000 bpd, citing lower regional refining margins.
The Indian group is in the process of rationalising its international assets in a bid to reduce debt and concentrate on its core activities in the subcontinent.
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