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Shell To Sell Essar For $1.3B

Fri, 02/18/2011 - 10:28am
Manufacturing.net
AMSTERDAM (AP) -- Royal Dutch Shell Plc. and Essar Energy say they have entered into a $1.3 billion agreement for the sale of Shell's Stanlow refinery in Britain and for its inventory of crude oil and refined products.

The India-focused company has until April 1 to sign a the final agreement or pay a $50 million break fee. Shell has agreed to pay a fee of $10 million if it breaks off the deal.

Essar's statement Friday said it was paying $350 million for the refinery and some $780 million for its onsite inventory.

They also agreed to an exclusive 5-year supply of crude by Shell. Essar will enter into long-term contracts with the Anglo-Dutch company for the sale of its products amounting to more than half the refinery's production, including diesel, aviation fuel and petrol.

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