Essar Oil has acquired a number of assets from BP in the UK, including storage and pipeline assets, to further strengthen its logistics infrastructure network.
Under the agreement, Essar will acquire an equity stake in the UKOP pipeline, a share of the contractual joint venture, with Shell, which runs the Kingsbury Terminal and a 100% interest in the Northampton Terminal.
The latest expansion of its UK interests means Essar has now invested nearly $1 billion in its UK business, since first acquiring the Stanlow Manufacturing Complex in July 2011.
The company owns 67 retail sites across England and Wales and it plans to grow its network to 400 retail sites over the next five years.
Essar Oil is already a significant player in the wholesale supply of Jet A-1 to major UKL airports and has successfully entered the market for direct supply of aviation fuel.
The company says it will continue to look for opportunities to expand inorganically, provided the acquisitions are long term value accretive and complement Essar Oil’s UK growth plans.
Essar Oil UK CEO S. Thangapandian says: ‘Essar continues to have great faith in the UK market, which represents an important part of the group’s strategic business growth ambitions.
‘The acquisition will allow Essar to maintain its presence in a very competitive UK Midlands region and grow that current footprint. In addition, we will continue to expand our retail offering – with a number of the 12 new stations we recently branded through an agreement with MPK being supplied from the two terminals.’