Essar Oil Limited

Essar Oil Limited has informed the Exchange that "Essar Energy Overseas Ltd a subsidiary of Essar Oil Limited has entered into an agreement to acquire 50% stake in Kenya Petroleum Refineries Ltd. ("KPRL"), a 4 million metric tonnes per annum (MMTPA) refinery in Mombasa, Kenya. The Government of Kenya holds the remaining 50% of KPRL. Essar will acquire the stake from the existing shareholders - Shell, Chevron and BP. Subject to certain conditions, the acquisition is expected to complete in early 2008. The Mombasa refinery is the only refinery in Eastern Africa. It currently produces LPG, gasoline, diesel, kerosene and fuel oil. The refinery is planned to be upgraded by adding secondary units at a project cost of USD 400-450 million. KPRL's products are sold into the Kenyan market and exported to neighbouring countries including Tanzania, Uganda, Burundi and Rwanda. Demand for petroleum products in these markets is estimated at 5 million tonnes per annum. In this regard the Company has submitted a copy of the press release dated January 15, 2008, titled "Essar acquires 50% stake in Kenyan Refinery". A copy of the press release shall be available on the NSE website (http://www.nseindia.com) under: Corporates > Latest Announcements and on the Extranet Server (/Common/Corporate Announcements).Click here for more details