Essar Oil (UK) Limited (EOUK), which owns and operates the Stanlow Refinery, said it has closed new financial arrangements of over $850 million.

This has allowed EOUK to replace its former credit facility as well as access additional capital, thereby strengthening its financial position. The funding is made up of liquidity from a diversified range of sources, including bilateral arrangements with many of its key customers on enhanced payment terms and other long-term financings, linked primarily to crude supply, the company said in a statement.

With these financial arrangements in place, EOUK has more low-cost liquidity to meet its upcoming requirements and can focus on its transition to become a ‘Low Carbon Energy Provider’ of the future.

EOUK is already working on delivering two blue hydrogen production hubs at Stanlow, with investment of £750 million.

Follow-on capacity growth is planned to work towards the government’s new target of 5GW of low carbon hydrogen for power, transport, industry and homes.

EOUK has also recently completed a review and update of its corporate governance and its Board has adopted the recommendations arising out of that review process, which included independent input from Ashurst LLP. As a result of that process, the Board has committed to appointing two independent non-executive directors to the Board.

“Securing this financing demonstrates the confidence all our stakeholders have in our long-term vision for Stanlow,” said Prashant Ruia, Chairman, Essar Oil (UK) Limited.

“With a strong economic recovery driven by the UK Government’s roadmap out of the pandemic, I feel that our business has moved into a positive and progressive phase for the benefit of all our stakeholders and employees. We look forward to furthering our investments in exciting new technologies, securing high-tech jobs and the Stanlow’s future at the heart of the UK’s green revolution,” Ruia added.

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