Essar Oil shines on renewing product sale and purchase agreement with BPCL

27 Apr 2012

Essar Oil is currently trading at Rs. 51.05, up by 1.05 points or 2.10% from its previous closing of Rs. 50.00 on the BSE.

The scrip opened at Rs. 50.55 and has touched a high and low of Rs. 51.35 and Rs. 48.00 respectively. So far 3,09,000 shares were traded on the counter.

The BSE group 'A' stock of face value Rs. 10 has touched a 52 week high of Rs. 137.50 on 28-Apr-2011 and a 52 week low of Rs. 44.80 on 18-Jan-2012.

Last one week high and low of the scrip stood at Rs. 53.75 and Rs. 48.00 respectively. The current market cap of the company is Rs. 6,971.00 crore.

The promoters holding in the company stood at 15.96% while Institutions and Non-Institutions held 3.54% and 6.50% respectively.

Essar Oil (EOL) has renewed a major product sale and purchase agreement with Bharat Petroleum Corporation (BPCL). The renewed four year agreement, running up to 2016 is for supply of diesel, petrol, kerosene and ATF (aviation turbine fuel) to BPCL from its Vadinar Refinery. It also entitles EOL to purchase products from BPCL and gives the two companies the option of sharing each other’s distribution infrastructure.

EOL has similar product sale and purchase agreements with two other leading oil marketing companies from the public sector, namely Indian Oil Corporation and Hindustan Petroleum Corporation.

Essar has recently completed the phase 1 expansion project at its Vadinar refinery at a capex of Rs 8,300 crore, which has increased its capacity from 14.7 million tonnes a year to 18 million tonnes, and improved complexity to 11.8 a further optimisation project, currently underway, will increase capacity further to 20 million tonnes by September 2012.

Vadinar Refinery, amongst the most complex refineries globally, has the flexibility to produce higher value, high-quality products, including Gasoline (petrol) and Gasoil (diesel) conforming to Euro IV and V norms, that have growing acceptance in both domestic and international markets.

Essar Oil is a fully integrated oil & gas company of international scale with strong presence across the hydrocarbon value chain from exploration and production to refining and oil retail. 

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