Essar Oil Takes Over 50% In Kenya Petroleum

India''s petroleum major Essar Oil has made its first overseas acquisition in the refining sector in Kenya. Essar Energy Overseas Ltd, a subsidiary of the company, has entered into an agreement to acquire 50 per cent stake in Kenya Petroleum Refineries Ltd (KPRL), a four million metric tonnes per annum (MMTPA) refinery in Mombasa, Kenya. The government of Kenya holds the remaining 50 per cent of KPRL. This, the first international acquisition by Essar in the refining sector, fits Essar''s strategy of achieving refining capacity of one million barrels per day. Essar will acquire the stake from the existing shareholders Shell, Chevron and BR. Subject to certain conditions, the acquisition is expected to be completed in early 2008. Essar Oil said KPRL''s products are sold into the Kenyan market and exported to many neighbouring countries including Tanzania, Uganda, Burundi and Rwanda.