Essar Energy
Encyclopedia
Essar Energy plc is a United Kingdom-incorporated, Mauritius
-headquartered energy business operating primarily in India
. Part of the Essar Group
, the firm has interests in both the power generation
and petroleum
industries. It is listed on the London Stock Exchange
and is a constituent of the FTSE 100 Index
.
conglomerate
, the firm was partly floated on the London Stock Exchange
in April 2010, marking the exchange's largest initial public offering
since December 2007. The company was added to the FTSE 100 Index
at the subsequent quarterly review. Essar Group retains an approximate 76% stake in Essar Energy. The lead underwriters to the Initial Public Offering were JPMorgan Chase and Deutsche Bank
. The primary offering raised £1.3bn. Ravi Ruia, the Chairman, and Sanjay Mehta, a senior board member of Essar Global Limited, were identified in an Economic Times of India article as instrumental in the listing.
. 75% of the firm's electricity output is supplied to other Essar companies which have facilities adjacent to the plants. The company intends to increase its generation capacity to 11,470MW using funds raised from its initial public offering.
, which is listed on the National Stock Exchange of India
and the Bombay Stock Exchange
. Essar Oil owns and operates a petroleum refinery
in Vadinar
, India's second largest, which has a capacity of 14 million metric tons per annum. It also owns 50% of Kenya Petroleum Refineries Limited (the remainder being held by the Kenyan government
), which operates the Mombasa Refinery.
The firm markets refined petroleum products under the Essar brand, both wholesale and through its network of around 1,381 franchise
d fuel station
s.
Essar Oil holds both onshore and offshore petroleum exploration and production
rights within India, as well as rights to a coalbed methane
block
. The firm also holds exploration and production interests in Nigeria, Vietnam, Australia, Indonesia, and Madagascar. Its total reserves
amount to 2 Moilbbl equivalent of 2P (proved plus probable) resources, 148 Moilbbl equivalent in contingent resources and 1012 Moilbbl equivalent in prospective resources.
Mauritius
Mauritius , officially the Republic of Mauritius is an island nation off the southeast coast of the African continent in the southwest Indian Ocean, about east of Madagascar...
-headquartered energy business operating primarily in India
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
. Part of the Essar Group
Essar Group
The Essar Group is a multinational conglomerate corporation in the sectors of Steel, Energy, Power, Communications, Shipping Ports & Logistics as well as Construction head quartered at Mumbai, India...
, the firm has interests in both the power generation
Electricity generation
Electricity generation is the process of generating electric energy from other forms of energy.The fundamental principles of electricity generation were discovered during the 1820s and early 1830s by the British scientist Michael Faraday...
and petroleum
Petroleum industry
The petroleum industry includes the global processes of exploration, extraction, refining, transporting , and marketing petroleum products. The largest volume products of the industry are fuel oil and gasoline...
industries. It is listed on the London Stock Exchange
London Stock Exchange
The London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...
and is a constituent of the FTSE 100 Index
FTSE 100 Index
The FTSE 100 Index, also called FTSE 100, FTSE, or, informally, the footsie , is a share index of the 100 most highly capitalised UK companies listed on the London Stock Exchange....
.
History
Established in 1998 as a wholly owned business unit of the Essar GroupEssar Group
The Essar Group is a multinational conglomerate corporation in the sectors of Steel, Energy, Power, Communications, Shipping Ports & Logistics as well as Construction head quartered at Mumbai, India...
conglomerate
Conglomerate (company)
A conglomerate is a combination of two or more corporations engaged in entirely different businesses that fall under one corporate structure , usually involving a parent company and several subsidiaries. Often, a conglomerate is a multi-industry company...
, the firm was partly floated on the London Stock Exchange
London Stock Exchange
The London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...
in April 2010, marking the exchange's largest initial public offering
Initial public offering
An initial public offering or stock market launch, is the first sale of stock by a private company to the public. It can be used by either small or large companies to raise expansion capital and become publicly traded enterprises...
since December 2007. The company was added to the FTSE 100 Index
FTSE 100 Index
The FTSE 100 Index, also called FTSE 100, FTSE, or, informally, the footsie , is a share index of the 100 most highly capitalised UK companies listed on the London Stock Exchange....
at the subsequent quarterly review. Essar Group retains an approximate 76% stake in Essar Energy. The lead underwriters to the Initial Public Offering were JPMorgan Chase and Deutsche Bank
Deutsche Bank
Deutsche Bank AG is a global financial service company with its headquarters in Frankfurt, Germany. It employs more than 100,000 people in over 70 countries, and has a large presence in Europe, the Americas, Asia Pacific and the emerging markets...
. The primary offering raised £1.3bn. Ravi Ruia, the Chairman, and Sanjay Mehta, a senior board member of Essar Global Limited, were identified in an Economic Times of India article as instrumental in the listing.
Power
Essar Energy has an installed power generation capacity of 1,220MW across four plantsPower station
A power station is an industrial facility for the generation of electric energy....
. 75% of the firm's electricity output is supplied to other Essar companies which have facilities adjacent to the plants. The company intends to increase its generation capacity to 11,470MW using funds raised from its initial public offering.
Petroleum
The firm's oil and gas operations are carried out through its 86%-owned subsidiary Essar Oil LimitedEssar Oil
Essar Oil is an Indian integrated oil and gas company that is part of the Essar group based in Mumbai. It operates a major refinery in Gujarat, India, which made it the second largest non-state refiner in India in 2009....
, which is listed on the National Stock Exchange of India
National Stock Exchange of India
The National Stock Exchange is a stock exchange located at Mumbai, Maharashtra, India. It is the 9th largest stock exchange in the world by market capitalization and largest in India by daily turnover and number of trades, for both equities and derivative trading. NSE has a market capitalization...
and the Bombay Stock Exchange
Bombay Stock Exchange
The Bombay Stock Exchange is a stock exchange located on Dalal Street, Mumbai and is the oldest stock exchange in Asia. The equity market capitalization of the companies listed on the BSE was 1.63 trillion as of December 2010, making it the 4th largest stock exchange in Asia and the 8th largest...
. Essar Oil owns and operates a petroleum refinery
Oil refinery
An oil refinery or petroleum refinery is an industrial process plant where crude oil is processed and refined into more useful petroleum products, such as gasoline, diesel fuel, asphalt base, heating oil, kerosene, and liquefied petroleum gas...
in Vadinar
Vadinar
Vadinar is small coastal town located in Jamnagar district of the state of Gujarat, India. The offshore oil terminal of the Kandla Port Trust is located in Vadinar and contributes in a large way to the total earnings of this major port...
, India's second largest, which has a capacity of 14 million metric tons per annum. It also owns 50% of Kenya Petroleum Refineries Limited (the remainder being held by the Kenyan government
Politics of Kenya
The Politics of Kenya take place in a framework of a presidential representative democratic republic, whereby the President of Kenya is both head of state and head of government, and of a multi-party system. Recent constitutional amendments have enabled sharing of executive powers between the...
), which operates the Mombasa Refinery.
The firm markets refined petroleum products under the Essar brand, both wholesale and through its network of around 1,381 franchise
Franchising
Franchising is the practice of using another firm's successful business model. The word 'franchise' is of anglo-French derivation - from franc- meaning free, and is used both as a noun and as a verb....
d fuel station
Filling station
A filling station, also known as a fueling station, garage, gasbar , gas station , petrol bunk , petrol pump , petrol garage, petrol kiosk , petrol station "'servo"' in Australia or service station, is a facility which sells fuel and lubricants...
s.
Essar Oil holds both onshore and offshore petroleum exploration and production
Extraction of petroleum
The extraction of petroleum is the process by which usable petroleum is extracted and removed from the earth.-Locating the oil field:Geologists use seismic surveys to search for geological structures that may form oil reservoirs...
rights within India, as well as rights to a coalbed methane
Coalbed methane
Coalbed methane or Coal Bed Methane, coalbed gas or coal mine methane is a form of natural gas extracted from coal beds. In recent decades it has become an important source of energy in United States, Canada, and other countries...
block
Block (extraction of petroleum)
A block in the context of extraction of petroleum, signifies a sub-division of an underground reservoir for the purpose of administering a certain production allowable....
. The firm also holds exploration and production interests in Nigeria, Vietnam, Australia, Indonesia, and Madagascar. Its total reserves
Oil reserves
The total estimated amount of oil in an oil reservoir, including both producible and non-producible oil, is called oil in place. However, because of reservoir characteristics and limitations in petroleum extraction technologies, only a fraction of this oil can be brought to the surface, and it is...
amount to 2 Moilbbl equivalent of 2P (proved plus probable) resources, 148 Moilbbl equivalent in contingent resources and 1012 Moilbbl equivalent in prospective resources.