Leading international law firm Clifford Chance has advised Nagarjuna Oil Corporation Limited (NOCL), a member of the Nagarjuna Group, on the investment of up to US$130 million by Trafigura Pte Ltd into NOCL's oil refinery being constructed in Cuddalore, in the State of Tamil Nadu, India. In addition to Trafigura's equity investment, Trafigura will invest a further US$120 million into the construction of on-site storage facilities and associated infrastructure required to service the oil refinery.
Clifford Chance advised NOCL on both the equity investment and the commercial agreements necessary for the operation of the oil refinery and its crude oil supply and product offtake arrangements.
Partner Merrick White, who led the Singapore team, said, "We were very pleased to have assisted NOCL with this investment. It's an exciting project for NOCL and the state of Tamil Nadu as demand for oil products continues to rise in India."
Trafigura joins NOCL's other partners in investing into the oil refinery which will have an annual capacity of six million tonnes, and is strategically positioned to service the needs of the State of Tamil Nadu, which is experiencing a shortage in the supply of clean petroleum products. Commissioning of the oil refinery is scheduled to start this year.
Merrick was supported by counsel Melissa Ng, senior associate Anton Trixl and associate Andrew Heng.
Trafigura is the Singapore-based unit of the world’s third-largest crude oil trader, Netherlands’ Trafigura Beheer BV.
(Press Release by Clifford Chance)
