|LONDON (SHARECAST) - India-focused integrated energy company Essar Energy has completed its optimisation project at its Vadinar refinery four months ahead of schedule.
The group invested around $2.2bn in expanding capacity at the plant, which accounts for around one-tenth of India's refining capacity. The refinery can now process around 20m tonnes of oil per annum, or 405,000 barrels a day, and can handle heavier oil than it could previously.
Essar Oil, which is 87.1% owned by Essar Energy, has completed the refinery at a low capital cost of $12,746 per barrel, which is around half the global average, Essar claimed. Operating costs of $3 per barrel are also amongst the lowest globally.
"With this commissioning, our capex [capital expenditure] cycle has now come to an end and we are fully geared to deliver the value of our investments to all our stakeholders," said Lalit Gupta, Managing Director and Chief Executive Officer of Essar Oil.