BPCL to buyout Oman Oil stake in Bina refinery for Rs 2,400 cr

NEW DELHI: Privatisation-bound (BPCL) on Wednesday mentioned it’ll buyout Oman Oil Firm’s shares within the Bina refinery mission for about Rs 2,400 crore.

BPCL holds a 63.68 per cent stake in Bharat Oman Refineries Ltd (BORL), which constructed and operates a 7.eight million tonne oil refinery at Bina in Madhya Pradesh.

In a inventory trade submitting, BPCL mentioned it has “finalised business phrases in reference to the acquisition of the 88.86 crore fairness shares of Bharat Oman Refineries Restricted (BORL), constituting 36.62 per cent of the fairness share capital from OQ S.A.0.C. (previously often known as Oman Oil Firm S.A.0.C.) for a consideration of approx Rs 2,399.26 crore”.

The transaction, it mentioned, is topic to the execution of the related transaction documentation and different circumstances agreed upon among the many events.

“Upon completion, BPCL will maintain 100 per cent of the fairness share capital in BORL,” it mentioned.

On Tuesday, BPCL Director (Finance) N Vijayagopal had mentioned that discussions with OQ S.A.O.C. had concluded.

BORL was included in February 1994 to construct a refinery at Bina in Madhya Pradesh. The unit initially might flip 6 million tonnes of crude oil yearly into gasoline, which was subsequently raised to 7.eight million tonnes.

Earlier than the corporate is privatised, BPCL will exit Numaligarh Refinery Ltd (NRL) by promoting its 61.65 per cent stake to a consortium of

and Engineers India Ltd, Vijayagopal had mentioned.

It’s promoting stake as a result of the federal government had as per the Assam Peace Accord agreed to maintain NRL within the public sector.

“The consortium of OIL and Engineers India Ltd will purchase 49 per cent and the remaining 13.65 per cent will likely be offered to the federal government of Assam,” he had mentioned.

OIL at the moment holds 26 per cent fairness in NRL, whereas the federal government of Assam has round 12.35 per cent.

The worth for 61.65 per cent stake in NRL is reportedly round Rs 7,000 crore.

Put up NRL sale, BPCL can be left with three refineries at Mumbai, Kochi in Kerala and Bina.

The federal government is promoting its total 52.98 per cent stake in BPCL within the nation’s greatest privatisation until date.

Vedanta Group and personal fairness corporations Apollo International and I Squared Capital’s Indian unit Suppose Fuel have put in an expression of curiosity for purchasing the federal government stake.

The sale of NRL is step one in direction of the disinvestment of BPCL.

The federal government has already indicated that it expects to finish BPCL privatisation by the primary half of the fiscal starting April (2021-22).

The sale is vital to reaching the Rs 1.75 lakh crore disinvestment goal set for 2021-22.

BPCL will give the customer possession of round 15.33 per cent of India’s oil refining capability and 22 per cent of the gasoline advertising share.

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