© 2012 The Texas Lawbook.
By Natalie Posgate
Staff Writer for The Texas Lawbook
One of India’s most influential leaders on foreign policy and international business relations is visiting Dallas this week in what officials say is a sign of the increasing importance of the economic alliance between India and Texas.
S.M. Krishna, India’s Minster of External Affairs and a 1959 graduate of the SMU Dedman School of Law, is returning to his alma mater Wednesday to deliver what Indian media has described as a major foreign policy address concerning India’s position in the global market and its developing relationships with its neighbors, including Pakistan, Afghanistan and Iraq.
The highest-ranking Indian official to ever visit Dallas, Krishna’s presence comes at a time when Texas-based companies are doing more and more business with their counterparts in India.
During the past two years, businesses in Texas, including Fluor Corp, Pioneer Natural Resources, Atlas Energy and ConocoPhillips, have inked more than a dozen deals with companies in India. In addition, Indian-based companies are hiring Texas-based law firms, including Thompson & Knight, Vinson & Elkins and Akin Gump, to handle their complex legal transactional work in Texas and globally.
“I think it is very significant that India has had the leadership of someone educated in the U.S., especially with a post graduate degree from a Harvard Business School or a SMU Law School,” said Chris Schaeper, a partner at Dallas-based Thompson & Knight. “It’s very important and valuable.”
No company in India has more business involvement in Texas than Reliance Industries, India’s largest energy company. In May, Reliance signed a major contract with Fluor that requires the Irving-based company to perform management services for projects being executed at Reliance’s refining and petrochemical complex on the west coast of India.
In 2011, Reliance closed a $1.3 billion agreement with Pioneer, for a 45 percent ownership stake in Irving-based company’s investment in the Eagle Ford Shale in South Texas. A year earlier, Reliance signed a similar $1.7 billion joint venture agreement with then-Fort Worth-based Atlas Energy for a stake in the Marcellus Shale deposit in Pennsylvania and West Virginia.
This summer, Oil India, which is the state run exploration and production operation, announced that it has set aside more than $60 billion for global acquisitions. Oil India specifically cited oil and gas interests in Texas and Oklahoma as possible targets.
“There’s a tremendous need for investment capital in India infrastructure needs, energy needs, and just a wide variety of needs in Texas companies,” said Steve Davis, a partner at Akin Gump in Houston and past chair of the International Law Section of the State Bar of Texas.
Akin Gump, which has handled inbound and outbound legal transactional matters in India, currently represents Gas Authority of India Limited (GAIL), one of the country’s largest natural gas companies, in its efforts to find and help it acquire liquefied natural gas projects and other energy supplies abroad.
Davis believes that the reason why Texas is seeing more business with both India and other countries comes down to its location and international mindset. He said that the Port of Houston plays a crucial role in international business because it is one of the largest destinations for abroad businesses that are seeking access to U.S. partners.
“The amount of trade that flows through the Port is going to continue to increase,” Davis said. “If you’re looking to tap into the energy market globally, then there is no better place to do that right in Texas, and particularly in Houston.”
Gary Kotara, a partner at Vinson & Elkins in Houston who represented Reliance in its $7.2 billion joint venture with BP in 23 oil and gas production-sharing contracts, says that Indian companies are increasingly turning to Texas-based law firms for their expertise in specific business sectors.
“While it is still legally impossible for a Texas law firm to open an office in India, Indian companies will hire Texas firms on Indian matters where they have particular expertise and to handle their legal work in North and South America or globally,” said Gary Kotara, a partner at Vinson & Elkins in Houston.
Schaeper, who represented Indian steel companies in acquisitions and general corporate legal work in the U.S., said law firms in India have shown no inclination to open offices in the U.S. As a result, corporate officials in India go to the law firms that have previously done the kind of deals they are looking to do.
“They recognize the need to have experienced counsel,” says Schaeper, “It is all about the expertise.”
TK last year represented GAIL in a $100 million joint venture in the Eagle Ford Shale with Carrizo Oil and Gas.
“With 1.2 billion people, India is a huge market,” said Dean John Attanasio of SMU Dedman School of Law. “The visit of Minister Krishna is an honor for the Dedman School of Law and a great opportunity for Dallas/Fort Worth to intensify its relationship with the second most populous country in the world.”
Krishna will speak at the McFarlin Auditorium on the SMU campus starting at 6 p.m. Admission is free and open to the public, but seating is limited. Attendees must register online by midnight on Tuesday, Oct. 2.
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