Essar Oil UK raises $850 mn from diverse sources to retire earlier loans

With this, the firm has more low-cost liquidity to meet upcoming needs, can focus on its transition to become a low-carbon energy provider" with greater vigour

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

This has allowed EOUK to retire its earlier credit facility as well as raise 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 now in place, EOUK has more low-cost liquidity to meet its upcoming requirements, and can continue to focus its energies on its transition to become a “Low Carbon Energy Provider” of the future, it said. 

EOUK is already working on delivering two blue hydrogen production hubs at Stanlow, which will attract 750 million euros in total investment. 

The company also adopted the recommendations arising out of that review process, which included independent input from Ashurst LLP and its 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 Essar Oil UK, Chairman Prashant Ruia.

“We believe this confidence will be further bolstered by the updates we have made to our corporate governance, which includes a commitment to appoint two new independent Non-executive Directors to our Board. These appointments will further enhance our overall governance and risk assessment processes, as well as providing insights and strategic inputs to the business as it continues its transition to low carbon operations. 

“With 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 of our stakeholders and employees. We look forward to furthering our investments in exciting new technologies, securing high-tech jobs and Stanlow’s future at the heart of the UK’s green revolution,” he said.