Essar Oil may have to settle for half of the targeted stake in Kenya Petroleum Refineries (KPRL).
"The government has asked us to accept a 25 per cent stake in the refinery instead of 50 per cent. We have not yet taken a call if we will go ahead with that," said an official from the company, who did not wish to be identified.
In January, Essar Energy Overseas, a subsidiary of Essar Oil, had entered into an agreement with the government of Kenya to acquire a 50 per cent stake in KPRL, a 4 million tonnes per annum (mtpa) refinery in Mombasa, Kenya. The government of Kenya holds the remaining 50 per cent in KPRL.
However, according to a new arrangement by the Kenyan government, a Libyan company, Tamoil Africa Holdings, and Essar Oil will now own 25 per cent stake each in the company. Tamoil Africa reportedly has offered a better deal to the Kenyan government.
"The issue is still under discussion with the Kenyan government. We are yet to hear from them," said a spokesperson of Essar Oil.
Essar acquired the stake in KRPL from the existing shareholders
