Posted by FT News on September 26, 2018 10:12:10Goldman Sachs Group Inc (GS) has helped Indian oil producers to build pipelines to supply their crude, according to an analysis by the FT news agency.
The FT said the investment firm, which owns a stake in Bharat Petroleum Corp, has provided about $1bn in pipeline finance to the nation’s largest oil producer, adding that the investments helped to boost oil output in the country’s biggest oil patch.
India has about 4,000 million barrels of oil, roughly half of it in the form of crude oil, while about 1.2 million barrels are in heavy crude oil.
Goldman’s investments in Indian oilfields, which have been growing at about 9% a year, has boosted the country to the third largest oil exporter after the US and Saudi Arabia.
In 2015, Goldman Sachs invested in India’s biggest state-owned oil company, Bharat Petrol Corp (BPCL), for $4.4bn.
The company, which is based in New Delhi, is among India’s largest private oil companies.BPCL said the $4bn in investment had been made from three sources: Goldman Sachs’ $1.6bn in debt and $2bn of equity.BP CL also said it had received an additional $600m in loans from Goldman Sachs in 2019.
The investment helped BPCL to make inroads in the market for heavy crude, which has historically been a lower-cost alternative for the Indian oil sector, according the company.
Goldstein Sachs, which holds about a 20% stake in BPCL, is a private equity firm, with some $5bn of investments under management.
The bank is also the largest shareholder in BP CL’s parent, Indian Oil Corp (IOC), and has invested in several oil companies, including BPCL.BP Cl is also India’s second largest oil company.