Privatisation-bound Bharat Petroleum Corporation Ltd (BPCL) will buy out Oman Oil Company’s shares in Bina refinery project in the next 10 days, and is hoping to complete a separate sale of its stake in Numaligarh Refinery by the next month-end, its director-finance said on Tuesday.
BPCL holds a 63.68 per cent stake in Bharat Oman Refineries Ltd (BORL), which built and operates a 7.8 million tonne oil refinery at Bina in Madhya Pradesh. “Discussions (to acquire 36.62 per cent stake of OQ S.A.O.C) have concluded. We can come out with an announcement of the acquisition of the stake in next 10 days or so,” BPCL Director (Finance) N Vijayagopal told reporters on an earnings call.
OQ S.A.O.C. was formerly known as Oman Oil Company. Without giving details, he said the deal details such as acquisition price will form part of the announcement likely in the next 10 days. BORL was incorporated in February 1994 to build a refinery at Bina in Madhya Pradesh.
The unit initially could turn 6 million tonnes of crude oil annually into fuel, which was subsequently raised to 7.8 million tonnes. Vijayagopal said that before the company is privatised, BPCL will exit Numaligarh Refinery Ltd (NRL) by selling its 61.65 per cent stake to a consortium of Oil India Ltd and Engineers India Ltd.
It is selling stake because the government had as per the Assam Peace Accord, agreed to keep NRL in the public sector.