Essar Oil buys Shell’s Stanlow refinery and certain businesses

Energy and petrochemicals group Shell has signed a sales and purchase agreement for its 270,000 barrel-per-day Stanlow refinery in the UK, alongside certain associated local marketing businesses, with Essar Oil (UK) for a total expected consideration of $1.3bn (£812m).

The proposed sale covers oil products, chemicals manufacturing and access rights to certain distribution terminal assets, in addition to the commercial fuels, bulk fuels and local marine fuels businesses associated with the refinery.

It does not include any of Shell’s UK retail sites, the Shell higher olefins plant and alcohols units, the lubricant oils blending plant, lubricants marketing business, Shell aviation operations at airports, non-local marine business, marine lubricants, commercial road-transport marketing businesses, bitumen marketing business or the Shell technology centre at Thornton.

It is expected that the transaction, which is subject to certain conditions precedent, will be completed during the second half of 2011.