Essar Energy today finalised its acquisition of the former Shell-owned Stanlow oil refinery in Cheshire, UK.
The site manufactures diesel and aircraft fuel and has the capacity to refine more than 290,000 barrels of oil a day.
Essar says it will use the opportunity to directly access the UK market, and it also plans to import fuel products from its refinery in India to Stanlow.
The refinery, based in Vadinar, India, is undergoing an expansion plan that will see it produce up to 375,000 barrels a day by the end of 2011, and then a further 30,000 barrels a day by September 2012.
Half of the total payment for the Stanlow refinery has been made, a total of $175 million (€123 million), and the remaining is due to be paid in a year’s time.
A further $916 million was paid to Shell for the company’s crude oil, refined products and certain other inventory items on the Stanlow refinery site.