Indian Oiltanking, Vopak Eye East India Petroleum
12.06.2011 - NEWS

December 6, 2011 [The Times of India] - Vopak is in the fray to acquire East India Petroleum, one of the largest storage service providers for oil and gas on the east coast, after its main shareholder Global Infrastructure Partners (GIP) appointed Kotak Mahindra Capital for a sale. 


Vopak may vie with other international and domestic bidders like Indian Oiltanking for the deal with asking price in excess of Rs 500 crore. GIP, which owns several infrastructure projects including London City Airport, had acquired a 74% stake in East India Petroleum four years ago. A local firm holds the remaining stake. The PSU oil companies and private behemoths like Reliance Industries use the terminal facilities of East India Petroleum located at Visakhapatnam port.

A source at Indian Oiltanking-a joint venture between Indian Oil and Germany’s Oiltanking-confirmed that the firm has shown interest in East India Petroleum, which is the first private sector firm to set up a facility to handle liquid products and LPG or liquefied petroleum gas. A GIP spokesperson declined to comment on market speculation.

Vopak, one of the world’s largest storage companies for liquid bulks, entered India earlier this year when it snapped up Kandla-based CRL Terminals, which caters to chemicals and vegetable oil industries. Independent storage companies like Vopak sees bigger potential as commodity traders increase their exposure to Indian market and government-owned firms outsource terminal services . For the New Yorkbased $5.64 billion GIP, the sale in East India Petroleum is part of its strategy to unlock value of its portfolio investment . East India Petroleum is the only India-investment by GIP, which has biggies like Credit Suisse and General Electric as its joint founding investors .

Banking sources said the bidding interest in East India Petroleum was mostly from foreign offshore shipping and terminal companies that are chasing the India opportunities . The attraction is its location , just off the Vishakapatnam port, which is the largest on the east coast and the second busiest in India by volume after Kandla in Gujarat.

East India Petroleum, which commenced operations in 1997, handles 1.2 lakh kilo litres of oil, petroleum and lubricant products and petrochemicals and 9,000 metric tons of LPG. Siddhartha Khemka, analyst at Centrum Broking said, “Rather than going for a greenfield project, it makes sense for international storage handling companies to acquire an existing facility. They could then scale it up and capture volumes.”  

Polish Oil Refiner Orlen May Suspend or Cancel Olefins Project
11.08.2024 - NEWS
November 08, 2024 [Reuters]- Polish oil refiner Orlen will not continue with its Olefins petroch... Read More
Iraq to Expand Diwaniyah Oil Refinery
11.08.2024 - NEWS
November 08, 2024 [Iran Oil Gas]- Iraq’s Ministerial Council for Energy has decided to majo... Read More
USDA Announces $239 Million to Boost Access to U.S. Biofuels
11.08.2024 - NEWS
November 08, 2024 [Chem Analyst]- The U.S. Department of Agriculture (USDA) announced a significa... Read More
McDermott – CB&I Awarded Contract by Viva Energy For its Newport Terminal Tank Replacement Project Located in Melbourne, Australia
11.08.2024 - NEWS
November 08, 2024 [Storage Terinals Magazine]- CB&I, a wholly owned unrestricted subsidiary o... Read More