The government of Kenya holds the remaining 50% of Kenya Petroleum Refineries (KPRL). Essar will acquire the stake from the existing shareholders – The Shell Petroleum Company, Chevron Global Energy and BP Africa. Subject to certain conditions, the acquisition is expected to complete in early 2008.
The Mombasa refinery currently produces LPG, gasoline, diesel, kerosene and fuel oil. The refinery is planned to be upgraded by adding secondary units at a project cost of $400 million to $450 million.
Naresh Nayyar, CEO of Essar Energy Holdings, said: We are very pleased that our first refinery acquisition outside of India will be made in Kenya. We look forward to working with the government of Kenya to develop KPRL further to supply the growing Kenyan and adjacent markets and finalize the upgrade project.
