London/New Delhi: India's Essar group is in
the race to acquire Britain's second-largest oil refinery --
Shell's Stanlow complex, a media report said.
Shell hopes to pocket up to 1.5 billion pound from the
sale, the Sunday Times said.
Shell's Stanlow complex, near Ellesmere Port, Cheshire,
produces a sixth of the UK's petrol and is the oil giant's
only refinery in Britain which is being sold along with two
German refineries, at Heide and Harburg.
"Among the bidders are Libya's National Oil Corporation
and Essar, the mobile phone to shipping conglomerate owned by
the billionaire Ruia brothers, Ravi and Shashi," the Sunday
Times said.
However, the company officials of Essar were not
available for comments.
The daily further said that "American refining giant
Valero and an investment vehicle controlled by the Saudi royal
family are also expected to make offers."
The auction is being run by Lazard and final bids are
due on August 17, the newspaper said.
Shell has put its Stanlow complex up for sale as it tries
to rein in its huge cost base and struggles with the effects
of an oil price that is half the level of the historic high
hit last year.
Shell last month reported a sharp fall in profits and its
chief executive Peter Voser has launched a savage efficiency
drive that is expected to cost thousands of jobs.
The involvement of Essar and the Libyans reflects a wider
interest by developing-world groups that produce oil and want
to break into the European market, the report said.
Meanwhile, PetroChina is in talks with chemicals maker
Ineos, about taking a stake in its Grangemouth refinery.
"Stanlow, which employs more than 800 people, has seen
much controversy recently. Next week, construction engineers
will be balloted on strike action over pay, and it has also
been targeted by fuel protesters over petrol prices," the
Sunday Times added.
Bureau Report
First Published: Sunday, August 09, 2009, 17:24