Nayara Energy NEWS

Sources have revealed that Rosneft-owned Nayara Energy is planning on investing $19 billion in at Vadinar near Jamnagar. Staying in line with its expansion plans, the energy firm plans on setting up a 10.75 MMTPA capacity petrochemical complex and expand the refinery from 20MMTPA to 46MMTPA. The expansion will also be a debut venture into petrochemical business for the firm.

Nayara Energy has raised $750 million through an offshore loan. It has planned to reduce the company's cost of debt and strengthen its balance sheet with this money. According to a source, "The deal structure allows Nayara to leverage its regular export flows to optimise its capital structure and liability profile”. The loan is termed as Prepayment Finance Facility. Under this deal, Nayara will deliver gasoil to BP and Trafigura.

In a statement yesterday, CEO at Nayara Energy said that the firm has concluded a $750 million pre-payment deal with BP and Trafigura. The deal will require Nayara Energy to repay the two firms with the supply of gasoline and gasoil over the course of the next four years. Nayara, formerly known as Essar Oil, was acquired in 2017 by Rosneft-led consortium where Russian fund UCP and Geneva-based Trafigura are partners.

Sources have revealed that refinery giant, Reliance, forced by the shutdown of its gasoline making unit, has cancelled lifting of vacuum gas oil (VGO) cargo from local refiner Nayara Energy (formerly Essar Oil). Reliance was planning to lift 40,000 tonnes of VGO from Nayara’s Vadinar refinery this month, the sources said. Reliance reportedly announced force majeure on exports of gasoline from its Jamnagar refinery this week.

Nayara Energy, the rebranded Indian Essar Oil, has begun limiting its intake from Iran after the nuclear deal took place between the United States and Tehran. Nayara is one of India’s biggest buyers of Iranian oil but will now limit its intake of Iranian oil to about 3-4 million barrels in a month. Nayara would thus enhance the supply and trading network of its major stakeholders, Rosneft and Trafigura to replace Iranian oil.

In a major rebranding move, Essar Oil Limited has been renamed as Nayara Energy. ‘Nayara’ is an amalgamation of two words; one coined from the Hindi word “Naya” (news) and the other is “Era.” This is to signify the shareholders vision to bring new era of development who finalized this decision in an extraordinary general meeting.