Under the renewed three year agreement, running from 2012 to 2015, EOL will supply diesel, petrol, kerosene and ATF (aviation turbine fuel) to IOC.
The supply will be from its Vadinar Refinery, totaling 2 million tonnes each year.
Furthermore, it also entitles EOL to purchase products from IOC and provides the two companies an option of sharing each other’s distribution infrastructure.
The contract with IOC will be Essar Oil’s largest fuel supply contract.
Currently, Essar is completing the phase one expansion project at its Vadinar refinery which will increase capacity from 14.7 million tonnes a year to 18 million tonnes by March 2012.
In addition, a concurrent optimization project will increase capacity further to 20 million tonnes by September 2012.
Essar Oil is a subsidiary of the London-listed group Essar Energy.
