London, Sep 28 (TIWN) Indian-owned Essar Oil UK Limited (EOUK) has reached a new 'time to pay' (TTP) agreement with Her Majesty's Revenue and Customs (HMRC) on Tuesday, which gives the firm more time to settle its Value Added Tax (VAT) arrears and thereby provides it breathing space to emerge out of its financial crunch.

Chief Financial Officer of EOUK, Satish Vasooja, stated: "With this time to pay arrangement, we now have a significant runway to stabilise our balance sheet which has been adversely impacted by the (Covid-19) pandemic."

EOUK made a TTP commitment to HMRC in April 2021 to pay its 770 million pound arrears by January 2022.