Essar picks 50% stake in Kenyan refinery

With this buy, Essar Group and the Government of Kenya holds 50 per cent in KPRL, which is a 4 million metric tonne (MMTPA) per annum refinery in Mombasa, Kenya.
 
The acquisition also marks Essar’s foray in overseas refining market and is a step towards realising its vision of a global refining capacity of 1 million barrels per day.

With the latest acquisition, Essar expects to play a major and vital role in the African oil and gas markets.  Currently, KPRL products are sold into the Kenyan market and exported to adjacent countries including Tanzania, Uganda, Burundi and Rwanda. Demand for petroleum products in these markets, according to Mr Ruia, is estimated at 5 million tonnes per annum.

Back home, Essar Oil is operating a 280,000 bpd refinery at Jamnagar in Gujarat and this capacity is being expanded to 320,000 bpd by 2010 and eventually to 700,000 bpd by 2011.