Essar plans to sell UK refinery.

The Essar Group plans to sell the Stanlow refinery in Britain, three sources familiar with the matter said.

Essar is seeking to raise $500-$600 million for the plant in the northwest of England, two of the sources said. However other plants recently put up for sale in the UK, Murco's Milford Haven and the Bankrupt Petroplus's Coryton, have failed to find buyers.

Essar Energy, the subsidiary of Essar Group that bought the refinery for $350 million from Shell in 2011, declined to comment.

Stephen George, chief economist at KBC Process technology, said the price being sought could be hard to achieve. 'It would be optimistic in the current margin environment to expect that the asset has increased in value, though Essar have made strides to improve the configuration and margin of Stanlow which may improve the asset value,' he said.

A formal sales process will be launched after all the requirements related to the delisting of Essar Energy from the London Stock Exchange, two of the sources said.

TOI