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Essar Oil renews product sale and purchase agreement with IOC

25 Nov 2011 Evaluate

Essar Oil (EOL) has renewed a major product sale and purchase agreement with Indian Oil Corporation (IOC), India's largest oil retailer. The contract with IOC will be Essar Oil's largest fuel supply contract.

The renewed three year agreement, running from 2012 to 2015 requires EOL to supply diesel, petrol, kerosene and ATF (aviation turbine fuel) to IOC from its Vadinar Refinery, totaling 2 million tonnes every year. It also entitles EOL to purchase products from IOC and give the two companies the option of sharing each other's distribution infrastructure.

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

Essar is currently completing a phase 1 expansion project at its Vadinar refinery which will increase capacity from 14.7 million tonnes a year to 18 million tonnes (375,000 barrels per day) by March 2012. A concurrent optimisation project will increase capacity further to 20 million tonnes (405,000 bpd) by September 2012.

Essar Oil, a fully integrated Oil and Gas Company of international scale which is engaged in the exploration and production of oil and gas, refining of crude oil, and marketing of petroleum products.

Peers
Company Name CMP
Reliance Industries 1435.70
Indian Oil Corp. 144.70
BPCL 302.85
HPCL 387.00
MRPL 167.90
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