Bharat Petroleum Corporation Ltd (BPCL) to buyout 36.62% stake (88.86 crore equity shares) of Bharat Oman Refineries Limited (BORL) from OQ S.A.0.C. (formerly known as Oman Oil Company S.A.0.C.) for approximately Rs 2,399.26 crore.
- BORL built and operates a 7.8 million tonne oil refinery at Bina in Madhya Pradesh.
i.Currently, BPCL holds a 63.38% stake in BORL
ii.After the acquisition is completed, BPCL will hold 100% of the equity share capital(on a non-diluted basis) in BORL.
iii.The Government of Madhya Pradesh holds 26,900,000 convertible share warrants in BORL.
BPCL to sell its 61.65% share to a consortium of Oil India Ltd and Engineers India Ltd & Govt of Assam
i.BPCL has announced that it will sell its 61.65% stake. Of the total, around 49% stake will be sold to consortium of Oil India Ltd(OIL) and Engineers India Ltd and the rest around 13% to the government of Assam.
ii.The value for 61.65% in NRL is around Rs 7,000 crore.
iii.Currently OIL holds 26% equity in NRL and the government of Assam has around 12.35%.
iv.After the sale, BPCL will have 3 refineries in Mumbai, Maharashtra; Kochi, Kerala and Bina, Madhya Pradesh.
Privatisation of BPCL:
i.The government is selling its entire 52.98% stake in BPCL
ii.NRL sale is the 1st step towards the disinvestment of BPCL.
iii.The government expects to complete the BPCL privatisation by the first half of the fiscal beginning April (2021-22).
iv.This sale is crucial to achieve Rs 1.75 lakh crore disinvestment target set for 2021-22.
About Bharat Petroleum Corporation Ltd (BPCL):
Headquarters– Mumbai, Maharashtra
Director(HR), Chairman and Managing Director(CMD)– K. Padmakar
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