Why Trafigura’s oil investment could change industry

Author: Lucy McNulty | Published: 31 May 2012
Trafigura’s tie-up is an industry first


Trafigura's investment of up to $130 million into India's Nagarjuna Oil's (NOC) refinery and storage facility has established a new way of working for independent oil refiners and commodity traders.

The Dutch commodities trader's purchase in April of a 24% stake in the refinery currently under construction in India's Tamil Nadu state, set a precedent as the first tie-up of commercial trader and refinery outside of an integrated oil major. It is also Trafigura's first foray into the oil refinery and storage business in India.?The transaction will also see Trafigura invest $120 million in storage tanks and infrastructure adjacent to NOC's refinery.

Clifford Chance's partner Merrick White, who led the Singapore team representing...