Trafigura acquires 24 % stake in Nagarjuna Oil Corporation for Rs650 crore

Trafigura Beheer B V, the Netherlands-based independent international oil and non-ferrous concentrates trading firm, yesterday acquired nearly 24 per cent stake in Nagarjuna Oil Corporation Ltd (NOCL), for around Rs650 crore ($130 million) through its Singapore unit.

Trafigura will invest a further Rs600 crore ($120 million) in a 80:20 joint venture (JV) with NOCL to fund the construction of storage facilities and associated infrastructure at NOCL's refinery.

The refinery, covering 2,500 acres, is being constructed at Cuddalore in Tamil Nadu at an estimated cost of Rs7,160 crore. will receive crude oil from Trafigura's international producer partners.

The refinery, to be operated by NOCL will have an annual capacity of six million tonnes, and will receive crude oil from Trafigura's international producer partners.

It can process 100-per cent heavy / sour grades of crude and will supply light and middle distillates up to European IV standards.

Other partners in the project include TIDCO, a government of Tamil Nadu enterprise, and Tata Petrodyne, a Tata Group company.