Saturday, September 1, 2012

Essar Energy to join Kenya’s Fuel Retail Market



India’s largest private fuel retailer Essar Energy is set to retail fuel in Kenya where the likes of KenolKobil Ltd (KNOC) have a strong presence.
Essar enters the Kenyan retail market with an edge over competitors after acquiring 50 percent stake in Kenya Petroleum Refineries Limited (KPRL) from the Royal Dutch Shell, Chevron, and BP back in 2009. The Kenyan Government retains the other 50 percent in what is East Africa’s largest oil processor.
The London-listed company has already established a pilot fuel retail outlet in the country under an introductory franchisee model.
The Essar branded outlets will receive fuel from the company’s refinery situated in Kenya. The company has stated that for now it won’t involve local partners as it seeks to study the new market with modest expansion.   
Essar Energy through its unit Essar Oil runs over 1500 retail outlets in the mother country India under a franchise model, selling gasoline and gasoil.

About Essay Energy
Essar Energy (ESSR) is a holding company with large interest in India and US$17 billion of assets across the power and oil and gas industries. It operates in various segments of the industry that include refining and marketing business Vadinar Petroleum Refinery in India, the Stanley Refinery in the United Kingdom (Acquired from Shell UK Limited in 2011) and a 50 percent stake in the Kenya Petroleum Refinery Limited.
The company also engages in exploration and production, with 15 blocks and fields for exploration and production of oil and gas in India, Indonesia, Madagascar, Vietnam, and Nigeria.    
In the power sector, it operates six operational gas and liquid fuel-based power plants in India and Canada with a total installed capacity of 3055 MW.  
The company is listed on the London Stock Exchange (LSE), Bombay Stock Exchange, and the National Stock Exchange of India.


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