"The government has asked us to accept 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.
Essar Energy Overseas, a subsidiary of Essar Oil in January his year, had entered into an agreement with the government of Kenya to acquire 50 per cent stake in Kenya Petroleum Refineries (KPRL), a four million metric tonne per annum (MMTPA) 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 spokesperson from Essar Oil.
In KPRL, Essar acquired the stake from the existing shareholders
