Page 24 - Plastics News December2018

COMPANY NEWS

Trafigura, BP increase loans to Nayara Energy to $3 bn

ussian-backed Indian refiner Nayara Energy is set to immediately respond to a request for comment. The new
Rsecure its biggest fuel-backed loan, a $1.5 billion deal would bring Nayara’s total pre-payment transactions
advance from Trafigura, BP and some banks, according to during the year to nearly $3 billion. Trafigura and BP have
reports. It takes the total size of Nayara’s pre-payment already completed two similar deals.
deals to nearly $3 billion despite concerns over US
sanctions.The company, previously owned by the debt- HPCL to buy Iranian oil
laden Essar Group, is gradually raising its profile on India’s
energy map. It is scouting to secure its future revenue industan Petroleum Corp will buy Iranian crude
streams by locking in export financing deals. Trafigura and Hin January after a gap of six months, with the
nation’s overall purchases from Tehran at 9 million
barrels in the month, according to reports .The United
States in early November granted India a six-month
waiver from sanctions against Iran’s oil exports. Under
the agreement, New Delhi must restrict its Iran oil
purchases to 1.25 million tonnes, or 9 million barrels.
As part of the deal, HPCL will lift 1 million barrels of
Iranian crude oil in January, one source with knowledge
of the matter said, asking not to be named due to the
political sensitivity of Iran sanctions.It was unclear
whether HPCL would continue to buy Iranian oil on
oil major BP are in the process of syndicating a $1.5 billion a regular basis during the waiver period.HPCL had
loan to be repaid with future gasoline and gasoil cargoes halted Iranian oil purchases in July after its insurance
from the refinery over four years, the sources said. The company refused to provide coverage for the crude
syndication is expected to be completed before the end of because of U.S. sanctions, although its chairman said
the year, they said. Nayara, formerly Essar Oil, was taken last month that HPCL may resume buying Iranian oil
over by a consortium led by Russian oil major Rosneft in under sanctions waivers.Indian Oil Corp, the country’s
2017. Rosneft owns 49.13% of Nayara, while Russian fund top refiner, will lift 5 million barrels of Iranian oil
UCP and Swiss commodities trader Trafigura together
own a similar share. In last year’s deal, the consortium
acquired the 400,000 barrel-per-day refinery in Vadinar
as well as a port, power plant and 3,500 fuel stations for
nearly $13 billion. Asked for comment on the fuel-backed
loan, Nayara said in a statement sent to Reuters that its
improved financial performance and credit rating over
the last year had attracted more interest in working with
the company.
“This transformation of the company in the last one year in January compared to 6 million this month, while
has resulted in substantial interest from the top global and Mangalore Petrochemicals Ltd will buy 3 million barrels,
domestic banks who wish to partner with the company,” another source said, also asking not to be identified.
said Anup Vikal, Nayara’s chief financial officer. “As a part An IOC official had previously said his firm would lift
of this drive towards further efficiency and global interest 180,000 bpd - the full volume contracted under an
we are constantly evaluating multiple opportunities annual deal with Iran for this fiscal year ending March
including export advance as the company moves into the 31, 2019.Some of India’s oil imports from Iran will be
new era.” Deutsche Bank and ABN Amro are among the paid for in rupee under a payment mechanism with
foreign banks involved, the sources said. The banks did not Indian state-owned UCO Bank.

Plastics News December 2018 24