Oil and Natural Gas Corporation has entered into a joint venture with Japanese shipping major, Mitsui O.S.K. Lines, by investment into two separate GIFT city incorporated 50:50 joint venture companies, Bharat Ethane IFSC One Private Limited and Bharat Ethane IFSC Two Private Limited.
Cyril Amarchand Mangaldas advised ONGC on this JV. In addition to the legal due diligence undertaken for Bharat Ethane IFSC One and Bharat Ethane IFSC Two, CAM was involved in the documentation and negotiation of the joint venture agreement and the capital contribution agreements.
The transaction team was led by Vivek Rathore (Partner) and Soumya Srivastava (Partner), with the assistance from Satvik Kulshreshta (Principal Associate), Divya Rana (SA - Designate) and Associates Anamika Mishra and Sriniwas Chaudhary.
Each joint venture company will own and operate one Very Large Ethane Carrier. The vessels will operate under the Indian flag and will be deployed to transport ethane from the US to meet the feedstock requirements of ONGC Petro additions Limited (OPaL), a subsidiary a subsidiary of ONGC.
Through the deployment of VLECs for ethane transportation, ONGC aims to capitalise on emerging opportunities in energy logistics, strengthen integration across its value chain, and establish a robust operational presence in specialised shipping.
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