Essar Oil commences manufacturing at its 10.5 million tonne refinery. November 26, 2006

Essar Oil Ltd on November 24, 2006 has announced the profitable begin up of Operations at its petroleum refinery at Vadinar in Gujarat, India.

The plant will start its trial manufacturing with a capacity of 7.5 million tonnes per annum of crude which will gradually go up to 10.5 million tonnes per annum. This present phase of commissioning comes 4 months ahead of the initially scheduled date of commissioning, i.e. March 31, 2007. The corporate expects to attain production at full capability in the following two quarters.

The corporate mentioned that the undertaking cost of Rs 10,826 crore (USD 2.Four billion) is extremely aggressive and decrease than estimated prices for a inexperienced subject refinery.

The Refinery has been constructed with state-of-the-artwork, contemporary know-how and may have the potential to supply petrol and diesel suitable for use in India in addition to advanced crude Oil Distillation international markets. It may also produce LPG, Naphtha, light diesel oil, aviation turbine gas and kerosene. It has been designed to handle a various vary of crude – from candy to bitter and mild to heavy.

Shri. Shashi Ruia, Chairman, Essar Group mentioned. “We are delighted at the profitable commissioning of Essar Oil’s Refinery at a time when India is strengthening its presence in world markets and integrating with the worldwide economic system. The refinery signals our dedication to the nation to be a powerful and dominant force in core sectors of the Indian economy. The early commissioning can also be a tribute to the staff of the Essar Group and its business associates for his or her unstinted efforts

The refinery comes at a most opportune time and can fulfil the hole between worldwide demand and provide in the petroleum sector. Presently, refineries the world over, are operating at over 98 percent capability utilisation. Significantly, there was, no addition to refining capacities in the final three years and deliberate new capacities will not be anticipated to return up earlier than the tip of 2008.

Essar Oil’s refinery is supported by dedicated infrastructure that features utilities, terminals, crude intake and product evacuation facilities. These embrace:

Vadinar Oil Terminal, which has an built-in facility to receive crude via a Single Point Mooring system and dispatch of completed petroleum products by way of its product jetty. The Terminal can handle 32 million tonnes per annum of crude intake with a functionality of handling tankers as much as 350,000 DWT and product dispatch facilities with an annual capacity of 14 million tonnes. The Terminal includes a port, a tank farm, related pipeline network and storage & dispatch services. The Terminal has been built at a cost of Rs 2,857 crore (USD 635 million).

Vadinar Energy Firm, which generates 120 MW of energy at its co-technology plant and feeds each power and course of steam for the refinery.

Essar constructions had a significant role within the engineering, planning and development of all the refinery and had meticulously deliberate and executed the entire mission in record time. Essar Constructions has over a thousand extremely qualified technical and expert manpower, in addition to the 16,000 people who worked at the refinery site in the course of the venture phase. The Essar Group believes that the synergies and benefits of the construction business have been a distinct advantage in constructing this petroleum advanced.


The Company’s merchandise can have a prepared market both internationally and in India. The best location of the refinery near the Vadinar port ensures easy access to all worldwide markets including Europe and the USA.

The Company’s technique of commissioning its retail outlet in advance of the commissioning of the refinery ensures a prepared outlet for its products in India. The company will also be in a position to provide to bulk consumers. The company has already commissioned over 900 retail retailers and expects to have 1500 shops absolutely operational by the top of March 2007.