InvestorQ : Is it true that BPCL is acquiring a stake in the Bharat Oman Refinery?
Priyanka N made post

Is it true that BPCL is acquiring a stake in the Bharat Oman Refinery?

Neelam Naik answered.
1 year ago

Oil sector giant, BPCL, will acquire 36.6% stake in the Bharat Oman Refinery Ltd or BORL from its partner, OQ. It needs to be noted that BPCL already holds 63.3% in BORL and a fractional percentage is owned by the Madhya Pradesh government. The stake will be bought out by BPCL for a consideration of Rs.2400 crore and in the process it will become a near-100% owner of the Bharat Oman Oil Refinery.

The BORL refinery is located in Bina in the state of Madhya Pradesh. It currently has 7.8 MMTPA capacity. These are preparations ahead of the 52.98% stake sale by the government of India as the first step towards full private ownership of BPCL. BPCL had recently merged its gas subsidiary into itself. In addition, it had done a huge sale of shares held by its treasury division raising close to Rs.5200 crore in the process.

Ahead of the proposed stake sale of BPCL by the government, it has also approved the sale of its 61.7% stake in Numaligarh Refinery to Oil India Ltd and Engineering India Ltd. The central government is currently in the process of inviting bidders for its 52.98% stake in BPCL and this restructuring was part of the package promised by the GOI. The BPCL divestment is critical to achieving the divestment targets for the current fiscal year.