Essar Oil

Essar Oil may have to settle for half the stake in Kenya Petroleum Refineries (KPRL) than what it had desired. Essar Energy Overseas, a subsidiary of Essar Oil in January this year, had entered into an agreement with the government of Kenya to acquire 50 per cent stake in KPRL, a four million metric tonne per annum refinery, in Mombasa, Kenya. The government of Kenya holds the remaining 50 per cent in KPRL. However, according to a new arrangement by the Kenyan Government, a Libyan company, Tamoil Africa Holdings and Essar Oil will now own 25 per cent stake each in the company. Tamoil Africa reportedly, has offered a better deal to the Kenyan Government.