Portfolio

Diversified across core economic sectors

United Kingdom

2011

Active

Essar Oil (UK) is committed to playing a key role in the decarbonisation of the UK economy, with ambitious plans to build an energy transition cluster in the North West of England.

Essar is transforming for tomorrow, and through Essar Oil (UK), is leading this change in the UK by developing projects in refinery decarbonisation, biofuels, and new energies logistics to help deliver the UK’s energy transition ambitions.

The company is a leading UK-focused downstream energy company whose main asset is the Stanlow Manufacturing Complex, one of the most advanced refineries in Europe and situated close to the major cities of Liverpool and Manchester. The company is developing this location to create a strategic energy transition park.

The company is a key strategic national asset, annually producing over 16% of the UK’s road transport fuels, while playing an important part in Britain’s petrochemical industry. It produces 3.5 billion litres of petrol, 4.9 billion litres of diesel and 2.3 billion litres of jet fuel per year.

A major supplier in the North West and beyond, with customers including most of the major retail brands operated by international oil companies and supermarkets, Manchester and Liverpool airports, leading commercial airlines and the region’s trains and buses, Essar Oil (UK) is a market leader.

Essar has invested over $1 billion since acquiring Stanlow in 2011, when it became the first Indian company to buy and operate a UK-based refinery. The major improvement initiatives delivered under Essar ownership has turned the company around and built a highly profitable and sustainable business, which has posted EBITDA of over $300 million for each of the past four pre-pandemic years.

Essar has an entrepreneurial approach, driven by the innovation and dedication of its workforce across all its business streams and supported by significant capital investment to further grow and develop the business. Essar Oil (UK) is committed to becoming the UK’s first low carbon refinery, investing $1 billion over the next five years to support the development of the UK hydrogen economy and to decarbonise its operation. The company will half its emissions by 2030 and eliminate them by 2040.
This ongoing commitment to the UK’s energy sector was underlined in 2018 with the delivery of the largest ever maintenance and re-lifing turnaround to further improve reliability and safety, together with the completion of a major optimisation project to increase throughput (from 68 to 75 million barrels per year) and the production of high value products.

In 2019, the company acquired a number of assets from the multi-national BP, ensuring greater control over product evacuation and logistics infrastructure, helping to further expand our supply envelope in a very competitive UK Midlands region and underpin growth ambitions in the UK. These included

  • Equity stake of 11.5 percent in the UKOP pipeline,
  • 45% stake in a contractual joint venture with Shell, which runs the Kingsbury Terminal, and
  • 100% interest in the Northampton Terminal

Essar Oil (UK) is a major regional employer, with over 800 employees, a similar number of contractors on site and a further 5,000 people employed through the extended supply chain. It contributes an estimated £60 million each year to the local economy.

Over recent years, Essar has strategically broadened its downstream integration, with a highly successful and award-winning entry into the UK fuel retail market. With 70 Essar-branded UK retail sites already operational across England and Wales, we plan to grow this network to 400 retail sites over the next five years.

The company is a significant player in the wholesale supply of Jet A-1 to major UK airports and has successfully entered the market for direct supply of aviation fuel, signing agreements with a number of leading international airlines. This sector of the business continues to grow.

Over the coming decade, the Board is determined to transform the business to ensure its long term sustainability, and this includes detailed planning to increase the production of bio-products, jet and petrochemicals, while using transformative technologies to make innovative use of excess gasoline molecules.

This will be supported by continuing investment in people, processes and infrastructure to further improve our safety and environmental performance.

The company launched Vertex Hydrogen in January 2022. Vertex is a joint venture between Essar Oil (UK) and Progressive Energy and sits at the heart of HyNet, the UK’s leading industrial decarbonisation cluster.

Vertex plans to construct two new low carbon hydrogen production units with a planned total investment of £1 billon to deliver the hydrogen production hubs. Follow on capacity growth is planned to reach 80% of the UK Government’s new target of 5GW of low carbon hydrogen for power, transport, industry and homes by 2030.

Hydrogen from Vertex will be used to decarbonise Essar Oil (UK)’s production processes, along with lowering the emissions of other neighbouring business.

EOUK’s Corporate Governance and Strategic Leadership Framework

 

Board of Directors | Advisory Council | Executive Leadership Team

India, Vietnam, Nigeria

1999

Active

Essar Exploration & Production Ltd Mauritius (EEPLM) is an early stage developer, focused primarily on oil & gas exploration. Its global portfolio includes conventional acreages with a resource base of 3.4 billion barrels of oil equivalent, as well as unconventional hydrocarbon acreages that have a resource base of 15 TCF (2.5 bboe) of gas. It has invested $1.1 billion in various acreages across the world.

These investments include:

  • Our exploratory well in Vietnam offshore has encountered several intervals of hydrocarbon-bearing Upper Miocene clastic reservoirs with estimated net thickness of over 150 metres. Following approval from PVN, the well was announced as a Gas and Condensate discovery with a significant potential of additional hydrocarbon accumulation.
  • The Offshore OPL-226 block in Nigeria was awarded to Essar in March 2010. Essar holds 100% participating interest in the block through its subsidiary, Essar Exploration & Production Ltd., Nigeria (EEPLN) and is the Operator in this block. Essar completed 568 sq. km of 3D API seismic and has plans to complete one exploratory well as committed in the Minimum Work Programme.
  • Unconventional hydrocarbon acreages in India through its entity Essar Oil & Gas Expolartion and Production Limited (EOGEPL). EOGEPL is one of the largest exploration & production (E&P) companies in India primarily focused on Unconventional Hydrocarbons (UHC), with a resource base of 15 TCF of UHC that is strategically located in key sedimentary basins across India. The company is a pioneer of UHC in the country, with about 25 years of experience in E&P of Coal Bed Methane (CBM). EOGEPL’s flagship Raniganj East CBM asset is not only India’s largest producing CBM asset but also has a prolific shale gas potential.

EEPLM is breaking new ground in the unconventional hydrocarbon space in India and has emerged as a pioneer in CBM development and production. It seeks to utilise this experience and expertise to explore, develop and commercialise its other unconventional acreages towards enhancing the country’s energy security. With an independently assessed shale gas resource base in India, it is also poised to become a pioneer in this emerging energy frontier.


EOGEPL strengthens Board and adopts Governance Changes; Appoints prominent and highly experienced hydrocarbon veterans. Click here to read more…

India, United Kingdom

2020

In line with ESG goals, Essar is foraying into renewable energy, green fuels and new technologies. Under its Renewable Power Portfolio, Essar is investing in energy transition to Solar PV, Wind, Energy Storage, Hydrogen,IWPP and T&D. Through our investments in Vertex Hydrogen, we plan to build a Hydrogen Hub in the United Kingdom, helping the country achieve their net-zero goals. We plan to develop Biofuels Platform, by setting up capacity of ~750 TPD of biogas, with a production capacity of 1 MMSCMD. ~2MLPD of Ethanol, along with marketable solid and liquid organic manures will be produced as by-products. Under ventures in new technologies, Essar is investing in virtual power plants, data integration with remote satellites, drone technologies, meteorology and block-chain, etc

Diversified foray into renewables

  • Developing a consolidated capacity of 5GW in renewables
  • Building an integrated biofuel complex and retail Ethanol, Biogas and LNG together under one roof as clean energy, meeting growing demands for ESG
  • Key geographies to be covered are India, South East Asia, Africa and UK with 75% of capacities to be built in India while 25% international
  • Roadmap to be set out in conjunction with National Hydrogen Mission
  • Partnering with HyNet North West consortium to deliver an integrated carbon capture, and the first blue hydrogen (low carbon hydrogen) production hub in the UK
  • Plan to construct two blue hydrogen production hubs at Stanlow at a potential ~Rs 7,500 crore (£750 million) investment, thereby supporting UK’s hydrogen economy and net zero goals

India, Canada

1997

Essar Power is one of India’s first private sector independent power producer having a successful track record of 25+ years. It has a power generating capacity of 2070 MW across four plants in India and Canada. Essar is also foraying into renewable energy starting with a plan to set up a 90 MWp PV Solar power plant in Dhatia, Madhya Pradesh. Essar Power has also invested in the transmission business and constructed a 465-km interstate transmission system which spans across three Indian states.

Essar has invested about USD 4.2 billion in the power portfolio, which includes USD 1.5 billion of equity. The company aims to bring down leverage in its balance sheet from USD 1.5 billion currently to about USD 1 billion. The deleveraging efforts include the debt restructuring in the IPPs, which were affected by the cancellation of coal mines and unviable pricing of imported thermal coal. Essar Power is in advanced stage of discussions with its lenders to restructure all it’s existing debts. The Company has put together a clear programme to address the challenges faced by the IPPs and is confident of overcoming them in the current year.

Essar power has targeted to decarbonise its Power portfolio to reduce carbon emissions, help mitigate climate change and support the Paris Agreement’s target to keep the increase in global average temperature to well below 2 °C above pre-industrial levels. In line with this, Essar Power has planned to foray into the renewable sector with a major focus on PV Solar, Battery Storage, Electric Vehicle, Integrated Water & Power Projects, Biomass and Wind energy.