(ET)
Russian-backed Indian refiner Nayara Energy has completed a long-term pre-payment deal with BP and global commodities trader Trafigura for $750 million, Nayara’s chief executive said. The deal, backed by a consortium of international banks, will see the two firms repaid with future gasoline and gasoil over the next four years.
Pre-payments are one the financing mechanisms frequently used in the oil industry. The total is half the amount originally targeted but is key for asserting the firm’s independence after being previously owned by the debt-laden Essar Group which was wholly dependent on local lenders.
