Essar buys stake in oil terminals & pipeline from BP Plc
In order to expand its business in the UK, Essar Oil UK, part of the Ruias’ Essar Group, has acquired stakes in two terminals and one pipeline from BP Plc.
Essar Oil UK has acquired an 11.15% stake in the United Kingdom Oil Pipeline (UKOP), a 45% stake in the Kingsbury Terminal and the whole 100% stake in the Northampton Terminal.
S Thangapandian, Chief Executive Officer, Essar Oil UK, said, "The transaction gives us the ability and infrastructure to move products from Stanlow refinery to other destinations boosting our logistics infrastructure."
Essar Oil bought the Stanlow unit in 2011. Since then, the company has invested more than $850 million in the refinery to turn it around.
"The acquisition will allow Essar to maintain its presence in a very competitive UK Midlands region and grow that current footprint. In addition to expanding our fuel retail network, we will be bidding for new airports where we are not present. Our access has been more into Liverpool, Leeds and Manchester. Post this deal, we will be looking at airports around Kingsbury and Northampton where we can reach," Thangapandian further stated.