Essar among bidders for UK’s oil refinery: Report
10 Aug 2009
The Ruia-owned Essar group is the front runner to buy Britain's second-largest oil refinery, reported the Sunday Times in its yesterday's edition.
Shell's Stanlow complex near Ellesmere Port, Cheshire, produces a sixth of the UK's petrol and is the oil giant's only refinery in Britain. However, the company has put it 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, the report added.
''Shell last month reported a sharp fall in profits and Peter Voser, chief executive, has launched a savage efficiency drive that is expected to cost thousands of jobs,'' it said.
Stanlow is being sold along with two German refineries, at Heide and Harburg. The auction is being run by Lazard and final bids are due on August 17. Shell hopes to pocket up to £1.5 billion from the sales.
Among the bidders are Libya's National Oil Corporation and Essar, owned by the billionaire Ruia brothers, Ravi and Shashi. The American refining giant Valero and an investment vehicle controlled by the Saudi royal family are also expected to make offers.
The involvement of Essar and the Libyans reflects a wider interest by developing-world groups that produce oil and want to break into the European market.
