History of Essar Oil Ltd.

1989

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

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

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

- The Comp. is a member of Essar group.

1990

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

1992

- The Comp. became a wholly owned subsidiary of Essar Gujarat Limited [hereinafter referred to as `EGL's] in March.

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

- The Chennai Investments [Indias] Limited, is a subsidiary of EOL.

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

- The Comp. has India 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 & maintenance services for Refinery with an affiliate company, Essar Refineries Limited which in turn will enter into a tie-up with an international refining Comp. providing technical back-up services & key personnel required for successful operation & maintenance of Refinery.

1993

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

- The Energy Division obtained the President award for safety in onshore operations & a Silver award for safety [accident preventions] 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 [UOPs], for providing major process technologies.

1994

- 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's] for various business & strategic reasons.

- EOL proposes to import crude oil by Tankers & VLCCs of capacities 240,000 - 300,000 DWT. EOL shall develop dedicated marine & 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 supply of crude oil to EOL in the event of decanalisation of crude imports, at market based prices, as per principles & procedures to be mutually agreed at a later date.

1995

- EOL has entered into a contract with Essar Gulf FZE [Essar Gulfs], 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 & Materials & for construction & erection of all Equipment at site.

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

- The Comp. 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 Comp. at a price of Rs 25/- per share. The paid up share capital & share premium would increase by Rs 450,000,000 & Rs 675,000,000 respectively.

1996

- The Equity Share capital has increased due to the allotment of 3,70,01,400 Equity Shares & 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 & about 1 billion cubic metres of associated gas.

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

1997

- Essar Oil has joined the National Securities Depository Limited [NSDLs].

- 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 & the Cachar.

- The Exploration & production [E&Ps] division of Comp. has also signed production sharing contracts for three more exploration blocks-two onshore blocks in Rajasthan & one offshore in the Mumbai offshore basin.

- Essar Oil is the first & only Indian Comp. to enter the international market for contract drilling services through its energy division.

- 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 [MoUs] with IOC where the oil-PSU will market the products from the Vadinary oil refinery.

- Kandla Port Trust [KPTs] 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 & Reliance Petroleum Ltd have sought 13 per cent equity each in a proposed pipeline joint venture.

1998

- The Ruias-owned Essar Oil [EOLs] has forged alliances with three foreign oil companies & Hindustan Oil Exploration Comp. [HOECs] for joint exploration activities in the country.

- The Comp. has initiated a marketing agreement with the public-sector Indian Oil Corporation [IOCs], according to which, 50 per cent of offtake from the refinery would be through IOC, & the balance through BPCL.

1999

- 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 [ATFs], high speed diesel, superior kerosene oil, naphtha and liquefied petroleum gas [LPGs].

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

- Crisil downgraded Rs 765-crore [Rs 7.65 billions] 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 & Bharat Petroleum Corporation [BPCLs] have hired PriceWaterhouseCoopers & SBI Caps to independently evaluate the Ruias-promoted refinery & expedite the process of latter buying an equity stake in the company.

- Essar Oil picked up 6.5 per cent of Petronet VKP equity [65 lakh sharess] for a consideration of Rs 6.5 crore.a

2000

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

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

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

2001

- Essar Oil Ltd 10.5 million metric tonne refinery at Vadinar in Gujarat has achieved financial closure & is at an advanced stage of complying with certain pre-disbursement conditions stipulated by the financial institutions [FIss] & banks

2002

-Decides not to acquire 33.59% government shares in IBP Comp. 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 Ltds].

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

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

-Discloses shareholding according to Sebi Regulations, 1992.

-Changes its trustees according to Sebi Regulation, 1993 - according to which the lenders of Comp. can't 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.

2003

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

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

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

-The delay in completing the project compelles the Comp. for 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 Comp. in place of Mr Kamal Kishore.

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

-Board approves for 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 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 & 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 & SKSE

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

-The Comp. has bagged a tender for diesel supplies to the Bangalore Metropolitan Transport Corporation [BMTCs], which runs a fleet of 2,959 buses in the garden city.

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

2005

-Essar Oil inks deal with Myanmar for exploration