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History of Essar Oil Ltd., Company
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Essar Oil Ltd. Company History and Annual Growth Details


- Essar Oil Limited was incorporated as a Public Limited Company under
the Companies Act, 1956 on 12th September, with the main objective to
provide Development, Exploration, Production and related Services in
the oil & gas sector.

- The main promoters of Essar Oil Limited are Essar Investments
Limited, Essar Shipping Limited, South India Shipping Company Limited,
Essar Gujarat Limited and a foreign co-promoter, Prime Finance Company
Limited, and other NRI's associates and friends.

- EOL was engaged in preliminary activities relating to bidding for oil
& gas fields as well as advising the Energy and Offshore divisions of
Essar Gujarat Limited on technical matters relating to their

- The Company is a member of Essar group.


- The Exploration and Production Division was set up for the purpose of
Oil & Gas exploration activities.


- The company became a wholly owned subsidiary of Essar Gujarat Limited
(hereinafter referred to as 'EGL') in March.

- The Company has obtained 'No objection certificate from Gujarat
Polution Company Board vide letter N. PC/jmn - 105/02484 dated 19th

- The Chennai Investments (India) Limited, is a subsidiary of EOL.

- The Company is presently divided into three main divisions comprising
of Energy, Offshore and Exploration & Production divisions and is in
the process of setting up a new Refinery division.

- The Company has India's largest private sector fleet of drilling
rigs. The Energy Division has drilled the deepest well in Asia to the
depth of 6700 Mtrs. in Himachal Pradesh.

- EOL proposes to enter into an MOU for operation and maintenance
services for the Refinery with an affiliate company, Essar Refineries
Limited which in turn will enter into a tie-up with an international
refining company providing technical back-up services and key personnel
required for successful operation and maintenance of the Refinery.


- EOL is the first drilling Company in India to secure international
drilling contracts against international competitive bidding.

- The Energy Division obtained the President's award for safety in
onshore operations and a Silver award for safety (accident prevention)
in Offshore operations, based on its performance in 1992, from the
International Association of Drilling Contractors which is an
association of leading international drilling contractors.

- EOL has signed a Memorandum of Understanding with UOP Inter
Americana, USA (UOP), for providing major process technologies.


- In June, the Board of Essar Gujarat Limited proposed to transfer the
entire shareholding of Essar Oil Limited to Essar Investments Limited
(hereinafter referred to as 'EIL') for various business and strategic

- EOL proposes to import crude oil by Tankers and VLCCs of capacities
240,000 - 300,000 DWT. EOL shall develop dedicated marine and shore
facilities at Vadinar port for receipt of crude oil, storage and
transportation to Refinery site.

- EOL proposes to install a marketing terminal in the Refinery complex
with adequate facilities.

- EOL has entered into an MOU with Essar Gulf for the supply of crude
oil to EOL in the event of decanalisation of crude imports, at market
based prices, as per principles and procedures to be mutually agreed at
a later date.


- EOL has entered into a contract with Essar Gulf FZE (Essar Gulf), a
company based in UAE for supply of imported equipment.

- EOL has entered into a contract with Essar Projects Limited a group
company, for supply of indigenous Equipment and Materials and for
construction and erection of all Equipment at site.

- The Company entered into an MOU with Government owned public sector
oil company, Indian Oil Corporation Limited for marketing and
distribution of its products.

- The Company has issued 45,000,000 Warrants to Essar Investments
Limited which give right to EIL to exercise the option to subscribe for
45,000,000 equity shares of the Company at a price of Rs 25/- per
share. The paid up share capital and share premium would increase by
Rs 450,000,000 and Rs 675,000,000 respectively.


- The Equity Share capital has increased due to the allotment of
3,70,01,400 Equity Shares and conversion of Part A of 11,29,18,953
Optionally Fully Convertible Debentures into Equity Shares allotted on
April 24, 1995 pursuant to Public Issue, which are eligible for
pro-rata dividend.

- The energy division has made entry into Qatar with a three year
contract from Qatar General Petroleum Corporation for our deep Rig.

- It is proposed to produce 87 million barrels of oil and about 1
billion cubic metres of associated gas.

- A Marketing division has been set up to source, handle and market
petroleum products for the group in line with the Government's policy
from time to time. The Division is also engaged in LPG trading
activities and operates LPG and NGL installations at Hazira for
supplies to Steel & Power plants apart from trading.


- Essar Oil has joined the National Securities Depository Limited

- Essar Oil Ltd has decided to hike its petroleum refinery capacity at
Vadinar in Gujarat from nine million tonnes to 10.5 million tonnes.

- Essar Oil, the Essar oil company, has recently been awarded the
exploration rights for two new oil blocks, the Cambay basin and the

- The Exploration and production (E&P) division of the company has also
signed production sharing contracts for three more exploration
blocks-two onshore blocks in Rajasthan and one offshore in the Mumbai
offshore basin.

- Essar Oil is the first and only Indian company to enter the
international market for contract drilling services through its energy

- The government is set to award the prized Ratna R series oil field in
Maharashtra to Essar Oil for oil exploration activity.

- Essar Oil Ltd is raising the installed capacity of its refinery at
Jamnagar by 1.5 million tonne per annum, resulting in additional
investment of Rs 465 crore in the project.

- Essar Oil has also entered into a memorandum of understanding (MoU)
with IOC where the oil-PSU will market the products from the Vadinary
oil refinery.

- Kandla Port Trust (KPT) has entered into an agreement with Essar Oil
Limited for setting up major facilities for handling POL, under the
existing schemes of private participation.

- Essar Oil Ltd and Reliance Petroleum Ltd have sought 13 per cent
equity each in a proposed pipeline joint venture.


- The Ruias-owned Essar Oil (EOL) has forged alliances with three
foreign oil companies and Hindustan Oil Exploration Company (HOEC) for
joint exploration activities in the country.

- The company has initiated a marketing agreement with the
public-sector Indian Oil Corporation (IOC), according to which, 50 per
cent of the offtake from the refinery would be through IOC, and the
balance through BPCL.


- Essar Oil has unveiled plans to raise the capacity of its refinery to
over 21 million tonnes a year. The refinery will produce aviation
turbine fuel (ATF), high speed diesel, superior kerosene oil, naphtha
and liquefied petroleum gas (LPG).

- Essar Oil's delayed equity payment in Petronet India's Vadinar-Kandla
pipeline could adversely affect the schedule of debt disbursement for
the project.

- Crisil downgraded Rs 765-crore (Rs 7.65 billion) worth of
non-convertible debenture issues of Essar Oil to C from BB plus as the
company had not tied up funds for a project.

- Essar Oil and Bharat Petroleum Corporation (BPCL) have hired
PriceWaterhouseCoopers and SBI Caps to independently evaluate the
Ruias-promoted refinery and expedite the process of the latter buying
an equity stake in the company.

- Essar Oil picked up 6.5 per cent of the Petronet VKP's equity (65
lakh shares) for a consideration of Rs 6.5 crore.a


- Essar Oil proposes to hive off its drilling division into a separate

- Jagdeesh Mehta is the new Managing Director of Essar Oil.

- Essar Oil Ltd. has appointed Mr. Prashant S. Ruia as Director in
place of Mr. A.S. Ruia.


- Essar Oil Ltds 10.5 million metric tonne refinery at Vadinar in
Gujarat has achieved financial closure and is at an advanced stage of
complying with certain pre-disbursement conditions stipulated by the
financial institutions (FIs) and banks


-Decides not to acquire 33.59% government shares in IBP company Ltd.

-Financial Institutions ask for revamping before sanctioning loans to the sick oil company.

-IDBI approves for restarting the work at Essar oil refinery project at Vadinar, Gujarat.

-Mr V R Sahasrabuddha appointed as the nominee of debenture - trustees (ICICI Ltd).

-Government declares the application for marketing of motor spirit and high speed diesel as unsatisfactory.

-ONGC, Essar and Reliance receives authorisation from government to sell petrol and diesel.

-Discloses shareholding according to Sebi Regulations, 1992.

-Changes its trustees according to Sebi Regulation, 1993 - according to which the lenders of the company cannot continue as trustees.

-Negotiates with PSU refineries to source products for its entry into retail marketing of petro products.

-Gets permission from Registrar of companies to extend the financial year by six months.


-Asks Petroleum Ministry to intervene for completion and start of its vadinar project and asks for equity participation in the project by unwilling IOC.

-Shareholders approve for the arrangement of sale of Energy Division to Bin Jabr group Ltd, an oil and gas service provider based in Abu Dhabi.

-Shri E B Desai, Director and Shri P S Teckchandani, Wholetime Director retire from their respective offices and ceases to be the director.

-The delay in completing the project compelles the company for the payment of interest to its debenture holders.

-Finally persuades its lenders to agree on the financial revamping for its 10.5m tonne refinery project at Jamnagar.

-Concludes the sale of its energy division to Abu Dhabi for a total consideration of $0.6m.

-Asks debenture holders to wait for 22 years more to take back their money.

-Started marketing imported products. The first consignment of imported HSD already arrives.

-Gets corporate debt restructuring groups approval to restart its vadinar project.

-Appoints Mr R K Chavali as the Nominee on the Board of the company in place of Mr Kamal Kishore.

-Gets the nod to struck Ratna and R-series oilfield contract.

-Board approves for the issue of equity shares upto Rs.1300cr on a preferential basis to ABB Lumus.

-Tenders to acquire the stakes from the other holders of Petronet Central India, which is a petroproduct pipeline company.

-Sets up its first retail outlet at Devrukh in Ratnagiri District of Maharashtra.

-Essar adjourns meeting of its holders of fully paid 14% secured redeemable non-convertible debentures of Rs.105/- each holding more than 2000 debentures.

-Shareholders approve for the following at the EGM:
Increase in authorised share capital from Rs 15000 million to Rs 20000 million
Issue/allotment of equity shares/FCCBs/and/or any other financial instrument convertible into equity shares to ABB Lummus and/or promoters on preferential issure basis for an amount not exceeding Rs 13000 million.
Issue and allotment of equity/other financial instruments for an amount not exceeding US$ 250 Mn through Public/Euro issue.
Voluntary delisting of equity shares from the DSE, CSE, MSE, ASE, VSE and SKSE

-Divides Petromarketing Biz into two entities called 'retail' and 'institutional'.

-The company has bagged a tender for diesel supplies to the Bangalore Metropolitan Transport Corporation (BMTC), which runs a fleet of 2,959 buses in the garden city.

-Essar Oil Ltd and Castrol India Ltd on December 11, 2004, signed an agreement for sale of Castrol lubricants through Essar Oil fuel outlets throughout the country


-Essar Oil inks deal with Myanmar for exploration


-Essar Oil joins hand with US firm for CBM exploration


-Essar Oil mulls to raise $100mn via ECB



- Essar Oil inked a Product Sale, Purchase and Infrastructure Sharing MoU with Indian Oil Corporation.
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