Indian Oil Companies in Africa New Growth Vista: Refinery Industry, Energy Market, Sustainable Energy Sources
Title
Date
No of pages
Indian Oil Companies in Africa New Growth Vista
MAY 2008
24
Essar oil Limited (EOL), a privately owned, vertically integrated oil company, is set to acquire the stakes of BP Plc (17%), Royal Dutch Shell plc (17%) and Chevron Corporation (16%) in the Mombassa Refinery of KPRL. It is the sole refinery in Kenya with a capacity of 4.68 MMTPA, of which the government of Kenya holds a 50% stake. As this simple refinery is failing to meet the increasing demand for petroleum products in Kenya, the top priority for EOL after the acquisition would be to modernize the refinery and increase its capacity. With this acquisition, EOL will gain a foothold in the midstream sector outside India. The company already has an international upstream presence with stakes in three exploration blocks in Madagascar, two in Myanmar and one in Nigeria. A refinery in Kenya will help EOL to grow in east African countries like Tanzania, Uganda and Sudan. The next major step of EOL in Africa might be petroleum retailing. >> Read more
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