Essar Oil Ltd (EOL), a fully integrated oil company has notified that Essar Energy Overseas Ltd, a subsidiary of EOL, has acquired 50 per cent stake in Kenya Petroleum Refineries Ltd (KPRL), for an undisclosed amount.

However, the Kenyan Government will hold the balance 50 per cent in this 4-million-tonne refinery located in Mombasa, Kenya.

According to company officials, Essar has plan to upgrade and expand the refinery capacity to 5 million tons and sell fuel produced not only in Kenya but export them to neighboring countries, including Tanzania, Uganda, Burundi and Rwanda.

The refinery is expected to upgrade at a cost of $400-450 million.