1. • Merger ESSAR Oil Refinery with Stanlow
Refinery
Presented By
Rahul Parihar
Deepshree Patil
Ketan Patil
2. Essar
• Established in 1969 as construction company
• Managed by shashi Ruia (chairmen ) and Ravi Ruuia (Vice chairmen )
• Diversified in to steel, energy, power, communications, shipping ports, logistics
and construction
• IPO in 1988
• 1990s the group entered into steel making with its Hazira plant in Gujarat and a
pellet plant in Visakhapatnam. During the same decade the Essar Group expanded
its scope into other businesses gas exploration, oil refinery, construction and GSM
telephony.
3. • Essar's primary business is in the power and oil sectors.it is handled by Essar
Energy, which is approximately 76% owned by Essar Group,
• India's 2nd largest power generation company in the private sector.
• Essar Oil has an international presence across the hydrocarbon value chain from
exploration and production to oil retail. The company has access to a global
portfolio of onshore and offshore oil and gas blocks with about
45,000 km2 available for exploration.
• The refineries are Vadinar in Gujarat India; Stanlow in Cheshire, United Kingdom
and 50% controlling stake in Kenya Petroleum Refineries. Essar also has 1600 oil
retail outlets in various parts of India.
• Revenue US$ 27 billion (2012)
• Profit US$ 2 billion (2011)
4. Stanlow
• owned by Royal Dutch Shell until 2011
• Royal Dutch group created in 1907 by merger of two rival companies Royal Dutch
Petroleum company and shell Transport Trading company
• Founded by Marcus samuel
• merger gave 60% ownership of the new Group to the Dutch arm and 40% to the
British.
• In 2011 Royal Dutch shell decided to sell stanlow
• second largest in the United Kingdom after Fawley Refinery
5. • It Produces sixth of UK’s need of Petrol
• Refining capacity : 1200 millions per year of BPD capacity of 2,96,000
• Product output
– petrol 3 million tonnes
– diesel 3.5 million tones
– kerosene/jet fuel 2 million tonnes
– LPG & petrochemical feedstocks 1.5 million tonnes
– Fuel oil 1 million tonnes
6. • To increase refinery Production
• To get an access to a UK energy
route between London and
Manchester
• Provide options for the export of
products from INDIA
7. • Closure of oil refinery in UK in 2010-
2011.
• Production of oil went down in 2011
by 7% as compared to previous year.
8. Principal Terms and Conditions of the
Acquisition
• Deal done on 29 march 2011
• Acquisition Happened in 2 ways
1. Asset Purchase agreement
• 350 million (175 million at the time of
agreement and rest 175 million after 1 year @
interest rate 4 %)
2. Inventory agreement
• 922 million for stock of crude oil
9. IMPACT
• Raises Essar’s capacity up to 800,000 BPD.
• 193% increase in operating profit
• In the April-September half, Essar Energy posted
revenues of $12.84 billion, up 97% from $6.5 billion in
the eight-month period of June 2011-March 2012
• Essar Energy’s Indian refining and marketing
operations delivered an operating profit of $311.1
million in April-September, up from $107.7 million in
January-June 2011 (excluding sales tax benefit).
• By this acquisition Essar become 2nd largest oil refinery
in India.
