Renuka Sugars acquires sugar facility in Brazil

Shree Renuka Sugars acquired in November 2009 a sugar and ethanol producer Vale Do Ivai S.A. Acucar E Alcool (VDI) in Brazil for $82 million (approx Rs 377.2 crore).

The deal includes two sugar and ethanol production facilities with a combined cane crushing capacity of 3.1 million tpa. The proposed acquisition is likely to be funded through internal accruals which includes $105 million (approx Rs 483 crore) raised through QIP in August 2009. The acquisition has received approval of leading creditors of VDI.

Currently, Renuka Sugars has a production capacity of seven million tonne in India and is likely to add another three million tonne of crushing capacity through this acquisition. The company produces 1.7 million tpa of sugar while the VDI's output is estimated at 3,00,000 tonne.

Bhushan Steel acquires exploration firm in Australia

Bhushan Steel (Australia), part of Delhi based Bhushan Steel Group, has picked up 45 per cent stake in Bowen Energy, an Australian exploration company in September 2009. Earlier in 2006, the company had acquired 15 per cent in Bowen Energy.

With this development, the company now holds 60 per cent in Bowen. The remaining 40 per cent is with institutions.

Bowen Energy has 2,400 sq km of prime exploration ground in the Bowen basin. Bowen's areas of operations include uranium, while Bhushan's interest lies in thermal and coking coal. The coking coal is likely to be supplied to Bhushan's steel plant in Orissa.

Essar Oil acquire stakes in Kenya refinery

Essar Oil has acquired 50 per cent stake in the Mombasa based Kenya Petroleum Refineries in August 2009, which has a capacity of four million tpa. The company has entered into an agreement with Shell Petroleum (17.1 per cent), Chevron Global Energy Inc (15.8 per cent) and BP Africa (17.1 per cent) for the stake. The Kenya Government holds the remaining 50 per cent share in the refinery operated by Kenya Petroleum Refineries.

The refinery is likely to be upgraded by adding secondary units at a cost of $400-450 million (approx Rs 1,860-2,092.5 crore) with the capacity being increased to five million tpa. The investment in Kenyan Petroleum is to be on a debt-equity basis and funds are likely to be raised through project financing from international lenders and the Kenyan market.

Tamilnadu Petro plans major capex for Saudi Arabia, Singapore

Chennai based Tamilnadu Petroproducts (TPL) has chalked out a plan to set up linear alkyl benzene (LAB) and normal paraffin projects in West Asia and Southeast Asia at an outlay of $335 million (approx Rs 1,600 crore). TPL is jointly promoted by Tamil Nadu Industrial Development Corporation and Southern Petrochemical Industries Corporation. The proposed plants are to be set up by Certus Investment and Trading (CITL), Mauritius, a SPV floated by TPL for overseas investments and Proteus Petrochemicals.

The LAB project is likely to come up in Yanbu Industrial City, Saudi Arabia. The project includes an 80,000 tpa standalone plant along with associated utilities and offsite facilities. It is expected to cost $210 million (approx Rs 1,029 crore) and is scheduled to begin commercial production by March 2012. The equity investment in the project company will be made through Gulf Petroproducts Company, in which CITL will have a 50 per cent holding. According to sources, CITL is in talks with the Royal Commission of Yanbu for site allocation.

Meanwhile, the normal paraffin project entailing a cost of $125 (approx Rs 612 crore), is to come up in Singapore and have a capacity of 1,00,000 tpa. The project will be funded through debt-equity ratio of 70:30. The plant is likely to be located at Jurong Island, the site possession of which has been completed. It has also received in-principle clearance from the National Environment Agency, Singapore.

OVL plans investment in Iraq oil block

OVL, the overseas arm of ONGC is likely to invest $1.45 billion (approx Rs 7,105 crore) in Block-8 located in the western desert in southern Iraq bordering Saudi Arabia. The service exploration and production contract for Block-8 have been concluded.

The block is estimated to hold 645 million barrels of in-place reserves, of which 54 million are recoverable. OVL has committed investing $86 million (approx Rs 427.162 crore) in two phases of exploration and $1.45 billion in development of the reserves thereafter.

The contract will be a service contract wherein OVL will be paid about 18 per cent rate of return on its investment.

JPL in pact with Georgia for oil and gas exploration

Jindal Petroleum (JPL), a subsidiary of Jindal Steel & Power, has signed four production sharing contracts in January 2009 with the Democratic Republic of Georgia government for exploration and production of oil and gas in four blocks.

JPL will be investing $150 million (approx Rs 720 crore) in phases in the four blocks. Of the four, JPL holds 85 per cent stake in the three blocks and Georgia-based Ensearch Petroleum will hold remaining 15 per cent stake. However, JPL will have 100 per cent stake in the fourth block.

BPCL, Videocon partner for Indonesia oil exploration

Bharat Petroleum Corporation (BPCL), through its exploratory arm, Bharat PetroResources (BPRL), has got a footing in Indonesia for oil and gas exploration. The company has bought out 12.5 per cent from Anadarko Indonesia, a wholly-owned subsidiary of Anadarko Petroleum Corporation of the US. Videocon will hold 12.5 per cent in the venture as well. BPRL's commitment is estimated at $11.25 million for drilling a commitment well in the block in 2010.

Eventually, BPRL Ventures Indonesia (BPRL arm) and Videocon Indonesia Nunukan are expected to jointly account for 25 per cent in the four-way alliance which will include Anadarko's 35 per cent while Medco, an Indonesian upstream company, will hold 40 per cent.

The companies will work jointly on the Nunukan block in offshore Indonesia.

GMR Group acquires entire stake in Singapore's Island Power

The GMR Group has signed a deal in May 2009 with InterGen NV, an international power producer, to acquire Intergen's 100 per cent ownership stake in Island Power - a Singapore based private electric utility.

The group had gained an indirect interest in Island Power through its 50 per cent acquisition of InterGen in June 2008, and has now made a strategic decision to take this a step further by acquiring full and direct ownership of the Singapore energy development project.

Island Power is currently developing an 800 MW combined cycle power facility fired by natural gas to be located on Jurong Island.

OVL-GAIL conglomerate plan capex for Myanmar gas fields

OVL and GAIL (India) in collaboration with Daewoo Corporation and Korea Gas Corporation (KOGAS) are planning to invest $3.73 billion (approx Rs 17,933.84 crore) for their natural gas find in Myanmar.

The four partners are expected to invest $2.79 billion (approx Rs 13,141.32 crore) in the three gas fields in block A-1 and A-3 off the Myanmar coast and another $936.26 million (approx Rs 4,501.2 crore) for laying under-sea pipeline to take the gas to the shore.

Daewoo holds 60 per cent stake each in block A-1 and A-3 while ONGC Videsh OVL) has 20 per cent interest. Myanmar Oil and Gas Enterprise has right to take 15 per cent, subsequent to which Daewoo will have 51 per cent, OVL 17 per cent and GAIL and KOGAS 8.5 per cent each.

Daewoo has prepared a preliminary Field Development Plan (FDP) to tie-up Shwe and Shwe Phyu in block A-1 and Mya in block A-3 together to produce 500 million standard cubic ft per day of gas for 19 years. The field life is envisaged for 28 years. The final FDP is expected to be submitted by August 2009.

As per the preliminary FDP, the gas fields are likely to be developed in phased manner, wherein Shwe and Mya (North) fields in Phase I, addition of Mya (South) field in Phase II, addition of Shwe Phyu field in Phase III and installation of future compressor once pressure declines at Central Process Platform. First gas production is likely to commence in first quarter of 2013. The produce from these fields is likely to be sold to China for $7.72 per million British thermal unit at the landfall point in Myanmar.

Tata Steel, Riversdale plan capex for Mozambique development

Tata Steel and Riversdale Mining, Australia, are likely to invest $270 million (approx Rs 1,268.46 crore) for the initial Stage I development of the Benga Coal project in Tete province of Mozambique.

Stage I development is to be funded by Tata Steel and Riversdale in their respective proportions (35:65) from existing cash resources or any other alternative means. Tata Steel owns 19.38 per cent stake in Riversdale through its subsidiary Tata Steel Global Minerals Holdings Pte Ltd.

Currently, Riversdale has Australian $268 million cash to fund its share ($175 million i.e approx Rs 822.15 crore) of the project. Construction is expected to begin by December 2009. However, the partners are awaiting the final environmental approvals.

Stage I development envisages an initial production of 5.3 million ROM (recycled organic material) tpa to produce about 1.7 million tpa of high quality hard coking coal and 0.3 million tpa of export thermal coal.

Stage II expansion which to be taken up by 2014, comprise the installation of a second module of the coal preparation plant and increase ROM production to 10.6 million ROM tpa to produce 3.3 million tpa high quality coking coal and two million tpa export thermal coal.

Stage III is likely to increase the coal production to about 20 million ROM tpa through installation of two additional coal preparation plant modules.

The Benga Coal Project is likely to commence first production during 2010, and the supply of coking coal is expected to begin in 2011.

SuchirIndia to take up building project in Colombo

Hyderabad based SuchirIndia in partnership with NEB Rapid Infrastructure Projects, Sri Lanka, is likely to construct a $250 million (approx Rs 1,225 crore) 40 storeyed building project in the suburbs of Colombo. SuchirIndia is expected to take up the proposed project through a SPV SUCHIRNEB Projects.

The project is to comprise a tower complex that is expected to have a 40-floor commercial complex in Phase I and a 70-floor residential tower in Phase II at Battaramulla in the Colombo suburbs. While, the tower complex is estimated to cost $110 million (approx Rs 539 crore), the cost of residential tower is pegged at $140 million (approx Rs 686 crore).

The 1.2 million sq ft structure is scheduled to be completed in 30 months.

JSW to begin iron ore production in Chile by 2011

The JSW Group which holds 70 per cent stake in Sante Fe Mining, Chile, is likely to begin work on its iron ore mining project in Chile by 2011. JSW's stake in Santa Fe is held by its subsidiary in the Netherlands.

The group is planning to invest $400 million (approx Rs 1,925.2 crore) which is likely to be raised outside India for the mining project.

JSW plans to produce six million tpa of iron ore concentrates. The iron ore produced in the Chilean mine is likely to be sold in the international markets.