Liverpool city region oil giant Essar Oil UK has acquired a number of assets from BP taking its total investment since 2011 to around £750m.
From its refinery at Stanlow, on the banks of the River Mersey, Essar produces 16% of UK road transport fuels, including 3bn litres of petrol, 4.4bn litres of diesel and 2.1bn litres of jet fuel every year.
Under the agreement with BP, Essar will acquire an equity stake in the UKOP pipeline, a share of the contractual joint venture (with Shell) which runs the Kingsbury Terminal and a 100% interest in the Northampton Terminal.
Essar purchased Stanlow, where it employs more than 1,000 people, from Royal Dutch Shell in 2011 and, with this latest deal, has now invested almost $(US)1bn which equates to more than £750m.
The company is also now expanding its retail network and currently has 67 Essar-branded petrol retail sites already operational across England and Wales. It has confirmed plans to grow its network to 400 retail sites over the next five years.
Already a significant player in the wholesale supply of Jet A-1 to major UK airports, Essar has successfully entered the market for direct supply of aviation fuel, signing agreements with a number of leading international airlines and continuing to grow this sector of its business.
Essar Oil UK chief executive, S.Thangapandian, said: “Essar continues to have great faith in the UK market, which represents an important part of the group’s strategic business growth ambitions.
“The acquisition of these BP assets further demonstrates the company’s ongoing commitment to investing in and growing their businesses within the UK.
“Essar will continue to play a key role in keeping Britain on the move. It currently supplies over 16% of the UK’s road transport fuel demand and this agreement will enable us to improve our competitiveness.”