Essar Oil (UK) Ltd, which owns and operates the Stanlow Refinery, on Wednesday, said it plans to invest $250 million in capital expenditure and maintenance at Stanlow, in the United Kingdom, to ramp up throughput.
In a statement here, the company confirmed this capex investment and also reported strong Q4 figures and results for the financial year ending March 31, 2017.
The Essar Group had recently closed a $12.9 billion deal with Russian oil major Rosneft-led consortium for its Jamnagar refinery in Gujarat.
The Stanlow refinery, as a key national asset, produces 16% of the UK’s road transport fuel demand. It processed 9.09 MMT of crude, a 1.3% increase on the previous year’s 8.97 MMT, said Essar Oil (UK) Non-Executive Chairman Prashant Ruia.
“The major investment we have confirmed in Stanlow will materially increase throughput and further grow revenues, building on the progress we have made in turning around the business over the past six years. It also demonstrates Essar’s commitment to remain invested in the oil and gas sector.”
Essar Oil (UK) Chief Executive Officer S. Thangapandian said Essar’s investment will be in the Tiger Cub project at Stanlow to deliver improved yields across the product slate and drive revenue growth. Including FY18, Essar will have invested over $800 million since acquiring Stanlow in July 2011, helping to turnaround the business and deliver improvement.
Essar Oil (UK) Ltd is a subsidiary of Essar Energy Ltd, which owns and operates the Stanlow Refinery near Liverpool.