Essar Sells Drilling Unit to Bin Jabr Group
Essar Oil and Abu Dhabi-based Bin Jabr Group have finalized a deal whereby Essar will sell Bin Jabr Group its remaining land rigs. The deal is valued at Rs 250-300 crore. Essar Oil's drilling business has 11 rigs, 4 drilling rigs and 7 workover rigs.
Essar said the sale of its drilling unit is in line with the company's decision to focus on only three of its core business areas, exploration, refining and marketing. As part of this strategy, Essar Oil had earlier exited from the offshore drilling business. Group executives refused to disclose the valuation of the deal.
The proceeds are expected to be used to finance the completion of their refinery project on the west coast.
Essar Oil hopes to complete the refinery project, estimated to cost Rs 6,300 crore, in the next 18-24 months.