In a bid to monetise non-core assets, Essar Energy today said it had sold the entire 50% stake in Kenya Petroleum Refineries to the Kenyan government.
The two parties, along with Essar Energy Holdings, have entered into an agreement on the transfer of shares, said the Essar Group company in its release.
This transaction marks Essar Energy's complete exit from the refinery, which operates a 4-million-tonne oil refinery in Mombasa, Kenya, and is consistent with Essar's overarching goal of monetising non-core assets to focus on value creation in its core businesses.
Essar Energy became a shareholder in Kenya Petroleum Refineries in July 2009 through the acquisition of shares from Shell Petroleum Company, BP plc and Chevron Global Energy. Kenya Petroleum Refineries will now be held entirely by Government of Kenya.
Essar Group is saddled with a debt of Rs 88,000 crore which it has been looking to reduce by way of monetizing non-core assets. The group is also in talks with Russia's Roseneft to sell off its large stake in its oil business which could help the group lower its debt substantially.