Infrastructure firms Global Infrastructure Partners and Zeus Infra-management have acquired a 74 percent stake in East India Petroleum for an undisclosed sum.
Global Infrastructure will hold 80 percent of the stake acquired by the two investors.
East India Petroleum provides storage facilities for petroleum, oil and other petrol-based products.
The company is based in Visakhapatnam which is the fastest growing city in the south eastern Indian state of Andhra Pradesh. Visakhapatnam’s port was the busiest in India by volume for the twelve months to the end of March 2007.
Adebayo Ogunlesi, chairman and managing partner of Global Infrastructure Partners, said in a statement the company has significant opportunities for growth as energy consumption increases in India and the country builds storage capacity in line with global capacity levels.
Global Infrastructure Partners’ spokeswoman said the company has high hopes for investment in India. The firm bought a 25 percent stake in Indian port Chennai Container Terminal in July for an undisclosed sum.
The oil and gas sector has been a strong area of investment for private equity firms in recent years. Last week, Barclays Private Equity bought UK company Hydrasun, a provider of products and services to the oil and gas industry, for £75.5 million (€108 million; $154.4 million). A week previously emerging markets firm Actis bought a 49 percent stake in Pakistani oil and gas IT services company LMKR for an undisclosed sum.
Global Infrastructure Partners appointed oil and gas lawyer Joseph Blum as a partner and general counsel in its London office in July.