Essar Oil UK has acquired a number of British assets of oil giant BP as part of its effort to strengthen its distribution and logistics network. The Essar Group company is seeking to grow its presence across a number of markets here.
Acquisitions
Acquired for an undisclosed price, the assets include an equity stake in the UKOP north-south 200-km multi-product pipeline that connects the company’s Stanlow refinery to the Kingsbury oil terminal.
It has also acquired an equity stake in the joint venture that runs the terminal as well as a 100 per cent stake in the Northampton fuel storage terminal. The acquisitions are part of the effort to strengthen the company’s position in the UK’s highly competitive Midlands region and expand its footprint there.
Strengthening foothold
“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 of these BP assets further demonstrates the company’s ongoing commitment to investing in and growing their businesses within the United Kingdom,” said Essar Oil UK Chief Executive S Thangapandian.
The company currently supplies 16 per cent of the UK’s transport fuel demand and the acquisitions will enable it to further improve its competitiveness, he said.
He added that the company would continue to look for further acquisitions in the UK that met the requirements of adding long-term value and complementing growth plans.
Fuel retailing
The company has also been expanding its presence in the UK fuel retail market, with plans to grow its network to 400 sites over the next five years.
There are already 67 Essar branded UK retail sites across England and Wales; some of them are supplied by the terminals that Essar has acquired stakes in.
It has also been ramping up its presence in the supply of aviation fuel, both through wholesale supply to major UK airports, as well as direct supply to a number of airlines.