INDIA BUSINESS WORLD - JANUARY 16^th - JANUARY 31^st - 2008

ESSAR ARM TAKES 50% STAKE IN KENYA PETROLEUM REFINERIES

Essar Oil subsidiary Essar Energy Overseas Ltd has signed an agreement to acquire 50% of Kenya Petroleum Refineries Ltd, a 4-million-tonne refinery in Mombasa, Kenya. Essar will buy the stake from existing shareholders Shell Petroleum, Chevron Global and BP Africa. The government of Kenya holds the remaining 50% stake in the project. Subject to certain conditions, the acquisition is expected to be complete in a few months, according to an Essar Oil official statement. The Mombasa refinery is the only refinery in Eastern Africa. It produces LPG, gasoline, diesel, kerosene and fuel oil. Essar Oil is planning to upgrade the project by adding secondary units at $400-450 million.