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Essar in race to buy UK Shell Refinery

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This topic contains 1 reply, has 1 voice, and was last updated by  Charles Randall 12 years, 10 months ago.

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  • #3028

    basil parmesan
    Participant

     
     
    Essar in race to buy Shell refinery
     

    London/New Delhi, Aug. 9, 2009 (PTI): The Essar group is in the race to acquire Britains second-largest oil refinery, Shells Stanlow complex, according to The Sunday Times. Shell hopes to pocket up to 1.5 billion from the sale, the report said.
    The Stanlow complex in Cheshire (North West England) produces a sixth of UKs petrol and is being sold along with two German refineries at Heide and Harburg.
    Among the bidders are Libyas National Oil Corporation and Essar the mobile-phone-to-shipping conglomerate owned by the billionaire Ruia brothers, Ravi and Shashi, The Sunday Times said.
    However, Essar officials were not available for comment.
    The daily further said, American refining giant Valero and an investment vehicle controlled by the Saudi royal family are also expected to make offers.
    The auction is being run by Lazard, and the final bids are due on August 17.
    Shell has put its Stanlow complex up for sale as it tries to rein in its huge cost base and struggles with the effects of an oil price that is half the level of the historic high hit last year.
    Shell last month reported a sharp fall in profits, and its chief executive Peter Voser had launched an efficiency drive that was expected to cost thousands of jobs.
    The involvement of Essar and the Libyans reflect a wider interest by groups that produce oil and want to break into the European market.
    Stanlow, which employs more than 800 people, has seen much controversy recently. Next week, construction engineers will be balloted on strike action over pay, and it has also been targeted by fuel protesters over petrol prices, The Sunday Times said.
    Environment pact
    Essar Steel has entered into a Rs 300-crore deal with Denmark-based Nordjysk Elhandel for selling credits to lower greenhouse gases over 10 years.
    The agreement was signed last week and was facilitated by the Danish embassy in Delhi.
    Essar Steel will get money for employing energy efficient and green technologies in their businesses through this transaction.

  • #6030

    Charles Randall
    Participant

    Shell to Divest Refineries

    By Zacks Equity Research
    On Tuesday August 18, 2009, 1:30 pm EST



    Royal Dutch Shell
      is planning to sell three European refineries as part of its restructuring of downstream operations. Of these, the companys sole UK refinery Stanlow in Ellesmere, Cheshire is the most important. The other two are German refineries in Hamburg and Heide. Shell is also looking to sell its Montreal East refinery in Canada, which has a capacity of 121,000 barrels per day. The Stanlow refinery has a capacity of 272,000 barrels a day (producing about a sixth of UKs petrol output) and employs 1,000 people and 800 contractors. The two German refineries have an aggregate capacity of about 200,000 barrels per day and employ about 500 people each.Although Shell announced names of potential bidders for the European refineries, it has not disclosed any for the Montreal facility. Valero Energy Corp. (VLO), which is looking to expand in Europe and Libya, is one of the bidders for the European refineries. Indian conglomerate Essar Oil is another concerned party.However, Shell is not exiting the refining business totally. The sale of these refineries is part of the companys cost-cutting initiatives, which has become essential to guard against the recession that hit demand for petroleum products and pulled down oil prices by more than half. The company also announced a $500 million investment in a new hydrodesulphurization plant at its Pernis refinery in the Netherlands.In 2008, Shell spun off its REFIDOMSA refinery in the Dominican Republic. In total, Shell had divested more than $6 billion worth of assets in 2008 after about $10 billion in 2007. This takes the total divestment to over $28 billion over the last four years.While the current strategy to divest non-core assets and undertake major investments is a step in the right direction, it remains to be seen how Shell moves towards the stated goal of achieving top-quartile performance.
    ROYAL DUTCH SHELL PLC (RDS.A): Read the Full Research Report

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