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| Shell in talks with Essar to sell 3 European refineries |
| Press Trust of India / New Delhi Oct 30, 2009, 19:59 IST |
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British energy giant Royal Dutch Shell is in "exclusive" talks to sell three of its refineries in Europe to the Ruias-owned Essar Oil.
Shell is in "exclusive" talks with Essar to sell its Stanlow refinery in northwest England and Heide and Hamburg units in Germany, a company spokesperson said.
"We are only talking to Essar," the spokesperson said, adding that talks with other interested parties had ended but did not identify them.
The three refineries have a combined capacity of nearly 23 million tonnes and the acquisition, if successful, would be done through Essar Energy Holdings, a unit of Essar Oil.
"Yes. Essar has entered into an exclusive negotiation with Shell for buying Shell's refinery at Stanlow in UK and Heide and Harburg in Germany," an Essar spokesperson said when asked for comments. "However, it is too premature to comment any further on the matter."
The Hamburg unit has a capacity to process 110,000 barrels per day of crude oil (5.5 million tonnes a year), while Heide has a capacity of 91,000 barrels a day (4.55 million tonnes). Stanlow, Britain's second-largest refinery, can process 233,000 barrels a day (11.65 million tonnes).
Media reports have valued the three refineries at between 1 billion pounds and 1.5 billion pounds ($2.48 billion).
Shell, based in The Hague, is looking to save cash and slash costs as it fights back against a global economic downturn that has slashed energy demand and oil prices, AFP said.
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