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Essar Energy PLC

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Company Information

Essar Energy PLC is an important company from the energy industry. Founded in 2008 as a unit of the Essar Group, it operates mainly in India. The headquarters are located in Port Louis, Mauritius, but this is a UK incorporated business. The company focuses on the generation and transmission of power and on the petroleum industry.

Essar Energy PLC Overview

The Essar Group was founded 40 years ago as a diversified Indian corporation. The Group’s energy portfolio is transmitted to Essar Energy PLC, next to its own business, which includes oil, gas and coal seam gas blocks.

The company is created to respond to India’s increasing energy demands by providing low-cost products and associated services. Its operations are divided into two divisions: power generation, and oil and gas.

The Power Generation Division

The company is a private electricity producer with a functional power generation capacity of 1600 MW. It has four state-of-the-art equipped power plants in India and another one in the Canadian territory. The future expansion plans include four new power plant projects, which will increase capacity to 8070 MW.

Almost 75% of the electricity production is directed to adjacent Essar companies that are located in close proximity to the plants.

The Petroleum Division

Oil and gas operations are carried out through Essar Oil. The division focuses on:

• The exploration and production process of oil and natural gas
• The refining methods of crude oil
• The sales and marketing of refined petroleum

The company owns multiple oil refineries:

• Vadinar, which is the second largest private refinery in India
  There is an ongoing project to increase the refinery’s current capacity. The project will allow it to process a larger proportion of heavy and ultra-heavy crude oil and result in a larger proportion of middle and light distillates.
• Stanlow in UK has recently become a subsidiary of Essar Energy
  The acquisition procedure ended in July 2011. The refinery is integrated into Essar Energy and its overall performance will be improved in terms of productivity and cost savings. The company searches new and improved ways to use a heavier crude slate in order to succeed in creating an improved product mix.
• 50% of Kenya Petroleum Refinery Limited
  Essar Energy has oil and gas exploration and production rights within 17 blocks and fields. They can be located across the Indian country, Nigeria, Vietnam, in remote Australia, Indonesia and Madagascar.

The company also has an ongoing development project for the first Coal Bed Methane Block.

Products and Services

The refined petroleum products are sold under the Essar brand.

Essar Energy provides the following products and services for retail consumers across India:

• The generation and transmission of electricity
• The exploration and production of oil and gas
• Oil refining services

All these are provided to customers through the modern national network of 1,639 fuel stations, mostly functional and a part under construction. These franchised fuel stations sell Essar gasoline and gasoil. Moreover, the company is planning to increase the proportion of non-fuel related activities in the segment of retail outlets, in order to have an additional source of income.