Global Union eyes domestic energy sector

The Istanbul-based Global Union Ventures, an investment advisory firm specialising in energy sector, is all set to enter India. The firm recently concluded a $5 billion deal between Indonesia and Iran for building a greenfield refinery.

The only venture capitalist firm specialising in downstream and midstream sectors, is looking at opportunities in arranging finance for projects such as Bhatinda refinery of Hindustan Petroleum Corporation and Bina refinery of Bharat Petroleum Ltd.

"We are touch with various companies including Reliance, Bharat Petroleum, Hindustan Petroleum and Petronet LNG," Jefferey Waterous, chairman of Global Union said. Waterous will also meet Hindustan Petroleum chairman M B Lall this week.

He added that opportunities were immense in India, with four oil majors, including Indian Oil and Oil and Natural Gas Corporation, coming up with greenfield refineries.

In addition, India is also funds for proposed LNG terminals that have not taken off. Waterous said the Global Union Ventures will be opening office in Delhi and Mumbai. It already has offices in Baku in Azerbaijan and Barhain.

Waterous was confident of arranging finance for LNG terminals in India despite the fact that projects such as the Kochi LNG terminal of Petronet LNG and Ennore LNG terminal of Indian Oil were stuck owing to lack of gas supplies.

"However, a rate of return close to 15 per cent is required to attract investors," he said.

Waterous said the focus in India would be on gas facilities for growing energy requirements of India, including LNG facilities. Independent power projects involving coal, gas or diesel fired power plants and related transmission lines will also be pursued.

Among greenfield refineries in India, Hindustan Petroleum's Bhatinda refinery was left in a lurch when BP pulled out recently. Even the Bina refinery of Bharat Petroleum and Paradip Refinery of Indian Oil has been delayed for years.