The meeting between the government and Essar Energy, earlier planned for yesterday, has been rescheduled for Friday to allow legal teams for both parties to finalise exit documents.
The Indian investment giant has offered to sell its 50 per cent stake at the Mombasa based Kenya Petroleum Refineries Ltd to the government, for Sh432.5 million ($5 million).
This is 28.57 per cent less the Sh606.76 million ($7 million) it paid Shell, Chevron and BP before joining KPRL in July 2009.
Chief executive Brij Bansal said he expects a final decision on the exit to be taken during the meeting the second after one held on November 11.
The exit of Essar is likely to leave the government, which is scouting for another partner,with a huge liability to absorb.
“The legal agreement is that the liabilities (after exit of Essar) remain with the company(KPRL),” Bansal said in a telephone interview. “There are no disagreements between us and the government.”
By CONSTANT MUNDA, The Star
