Essar Oil UK (EOUK), a unit of India’s Essar Group, has acquired some strategic assets from BP to boost its logistics infrastructure network for expanding in the UK where it runs an oil refinery at Stanlow on the south side of the Mersey Estuary near Liverpool.

The acquisition includes an equity stake in the UKOP pipeline, a share of the contractual joint venture (with Shell) which runs the Kingsbury Terminal and a 100 per cent interest in the Northampton Terminal, Essar Oil UK Chief Executive Officer, S Thangapandian, said.

The BP assets are being acquired by two wholly owned subsidiaries of EOUK - Essar Midlands Limited and InfraNorth Limited.

The latest expansion of its UK interests means Essar has invested nearly US $1 billion in building a profitable and sustainable UK business, since acquiring the Stanlow manufacturing complex in July 2011.

EOUK said it plans to grow its network to 400 retail sites over the next five years from the existing 67 operational across England and Wales.

“Essar will continue to play a key role in keeping Britain on the move. It currently supplies over 16 per cent of the UK’s road transport fuel demand and this agreement will enable us to improve our competitiveness. In a rapidly changing landscape, it is critically important we stay competitive through constant business development and innovation,” Thangapandian said.

“The acquisition will allow Essar to maintain its presence in a very competitive UK Midlands region and grow the current footprint. In addition, we will continue to expand our retail offering – with a number of the 12 new stations we recently branded through an agreement with MPK being supplied from the two terminals,” he said.

Essar will continue to look for opportunities to expand inorganically, provided the acquisitions are long term value accretive and complements Essar Oil UK’s growth plans, he added.

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