Essar Oil to mop up Rs 8,000 crores

New Delhi, Jan 30: The Ruia-promoted Essar Oil Ltd today said it will raise about Rs 8,000 crore (two billion dollars) through various financial instruments to fund activities such as expansion of refining capacity, and exploration and production (E&P) activities.

The Board of Directors which met yesterday decided to raise long-term finance by issue of equity shares and/or convertible debentures and/or GDRs/ADRs/FCCBs by way of public and/or private offering in domestic/International market(s) and/or qualified institutional placement for an amount not exceeding two billion dollars (about Rs 8,000 crore).

The Board has also decided to consolidate its uptream E&P activities under its proposed subsidiary, Essar Exploration&Production Ltd, in order to build a strong fully integrated oil company having upstream, refining and downstream marketing activities, a statement said.

After the completion of E&P consolidation, Essar Oil will have nine Oil&Gas and Coal Bed Methane blocks namely three onshore blocks in Madagascar; one offshore block in Nigeria; oil&gas block in Mehsana, Gujarat; Coal Bed Methane block in Raniganj, West Bengal; offshore field Ratna&R Series and two onshore blocks in Assam, it added.

Essar Oil has commissioned all the processing units of its 10.5 mmtpa refinery which are expected to reach full capacity by the end of this quarter.

In addition the dispatch facilities by rail and road have also been fully commissioned.

UNI