Kenya says wants 50 pct refinery stake split

LONDON, July 23 (Reuters) - Kenya wants a private sector stake in an oil refinery split between India's Essar Oil (ESRO.BO) and Libya, the country's energy minister said on Wednesday.

Essar Oil Ltd, India's second largest private oil firm, earlier this year said it had entered an agreement to buy a 50-percent stake in Kenya Petroleum from Shell (RDSa.L), BP (BP.L) and Chevron (CVX.N).

"Libya also expressed interest in purchasing 50 percent," Kiraitu Murungi told Reuters on the sidelines of a business forum in London.

"Libya did not participate in the competitive process (for the refinery) but they have offered very attractive terms, not to the previous shareholders but to the government," Murungi said.

"The government has entered into discussions to see whether Essar and Libya can split the 50 percent stake,"

The Kenyan government holds the other 50 percent stake.

(Reporting by Sebastian Tong)