Hogan Lovells Lee & Lee Advises Trafigura on USD130 million Investment in India
08 May 2012
SINGAPORE, 8 May 2012 - Hogan Lovells Lee & Lee has advised Trafigura Pte Ltd (Trafigura) on its equity investment of up to USD130 million in Nagarjuna Oil Corporation Limited's (NOCL) oil refinery, currently under construction in Cuddalore in the southern Indian state of Tamil Nadu.
In addition to acquiring an equity stake, Trafigura will invest a further USD120 million into the construction of extensive storage facilities and associated infrastructure at the refinery’s 2,500 acre site.
Trafigura’s investment in the NOCL is the first direct investment in the refining business by Trafigura, enabling it to create operational efficiencies and to add value to its customers’ supply chains. Geographically, the facility is well positioned to receive crude oil from Trafigura’s international producer partners.
The refinery is scheduled to have an annual capacity of six million tonnes and expects to process 100% heavy/sour grades of crude and will supply light and middle distillates up to European IV standards. Other investors in NOCL include TIDCO, a Government of Tamil Nadu controlled enterprise, and Tata Petrodyne, a Tata Industries subsidiary.
Commissioning work at the refinery is expected to start this year with commercial operations scheduled to begin during the first half of 2013.
The Hogan Lovells Lee & Lee team was led by corporate partner Stephanie Keen and supported by senior associates Justin Tong and Matthew Nortcliff. Energy and Natural Resources partner, David Moss, provided sector specialist expertise.
Hogan Lovells' corporate practice in Singapore is highly active through the South East Asia region. Stephanie Keen, who also leads the private equity practice in Asia, commented:
"This transaction is a great example of our corporate capabilities in Singapore, showcasing both our significant legal capabilities but also our ability to manage complex transactions across the region.
It is also another example of the growth of investments into India by international companies. With the continuing growth of India as a major world economy, alongside an increasing population, we expect to continue to see significant corporate, infrastructure and energy related investments and projects into India by international companies.
We pleased to be able to support our international clients in their investments into such a vibrant and attractive market".
Trafigura is the Singapore-based division of the world's third largest crude trader, Trafigura Beheer BV.