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26-04-2012

Essar Oil renews product sale and purchase agreement with BPCL

Mumbai: Essar Oil Limited (EOL) today announced that it has renewed a major product sale and purchase agreement with Bharat Petroleum Corporation Limited.

The renewed four year agreement, running upto 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.

S Thangapandian, CEO – Marketing, EOL, said: “We are delighted to further cement our long-term relationship with BPCL. Essar Oil has emerged as the biggest supplier for fuels for BPCL. With our expanded capacity coming on stream, we are fully geared to serve the growing demands of high quality fuel for the nation.”

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

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