Following a series of feasibility tests, to review the current and future viability of Kenya’s refinery, Essar Energy has announced plans to sell its 50% stake in Kenya Petroleum Refinery Limited (KPRL). Essar acquired the 50% stake in KPRL in July 2009 from BP, Chevron and Royal Dutch Shell for a total consideration of USD 7m. Under the terms of the shareholders’ agreement established with the Government of Kenya (the holder of the remaining 50%), under certain conditions, Essar would have the right to exercise a put option under which the Government would buy Essar’s 50% share for USD 5m. Though remaining contentious since its inception, the Essar-Government of Kenya KPRL partnership has drawn a lot of mixed commentaries in the last 3 months. While Essar has questioned the viability of the venture, the Government has remained upbeat that the recent (June 2012) conversion of KPRL from a tolling refinery to a merchant refinery would boost KPRL’s performance. With Parliament currently discussing KPRL’s performance, focus being on whether Essar has fully satisfied the terms of the partnership, it will be interesting to see what happens following Essar’s exit announcement. (Essar Energy company announcement, Standard Investment Bank).