APSEZ has inked a definitive agreement with Oiltanking India GmbH and Oiltanking GmbH for the acquisition of 49.38% stake in IOTL and an additional 10% equity stake in IOT Utkal Energy Services Limited.
“With this acquisition, APSEZ’s oil storage capacity jumps 200% to 36 lakh kilolitre, making it India’s largest third-party liquid storage company. This ties well with our ambition to become the largest transport utility globally,” said Karan Adani, CEO and Whole Time Director, APSEZ.
In the past 26 years, IOTL has built a network of six terminals across five states with a cumulative capacity of 24 lakh KL. This includes its owned capacity of 5 lakh KL at Navghar terminal in Maharashtra, Raipur terminal in Chhattisgarh and Goa terminal; in addition to a boot capacity of 19 lakh KL for storage of crude and finished petroleum products. The Boot terminal with Indian Oil Corporation Ltd (IOCL) is situated at Paradip (Odisha) and operations and maintenance contracts with IOCL are at JNPT (Maharashtra) and Dumad (Gujarat).
A majority of IOTL’s tank capacity is contracted by public sector undertakings and oil majors. With around 80% of IOTL’s capacity under ‘Take-or-Pay’ contract, there is a good visibility on the future cash flows of the company.