BPCL Acquires Oman Oil’s Stake In Bina Refinery For Rs 2,400 Crore
A worker rides a bicycle through the Bharat Petroleum Corp. refinery in the Mahul area of Mumbai, India. (Photographer Dhiraj Singh/Bloomberg)

BPCL Acquires Oman Oil’s Stake In Bina Refinery For Rs 2,400 Crore

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Privatisation-bound Bharat Petroleum Corporation Ltd. on Wednesday said it has acquired partner OQ’s entire stake in the Bina refinery project in Madhya Pradesh for Rs 2,400 crore.

BPCL signed a sales purchase agreement with OQ, formerly known as Oman Oil Company Ltd, to acquire its 36.6% stake in Bharat Oman Refineries Limited, the company said in a statement.

With this, BPCL now has full control over BORL, which runs a 7.8 million tonnes per annum capacity oil refinery at Bina in Madhya Pradesh.

"Bharat Oman Refineries Limited was incorporated in 1994 as a public limited company with equal equity participation of BPCL and OQ. Since March 2020, BPCL has been holding 63.4 per cent and OQ 36.6% equity in the company. The Government of Madhya Pradesh has a minor stake in the company through compulsorily convertible warrants," the statement said.

For OQ's stake, BPCL will pay about Rs 2,400 crore, it said.

Commenting on the occasion, N. Vijayagopal, Director (Finance) of BPCL said, "With the acquisition of OQ's entire stake in BORL, BPCL will establish control over BORL. This is expected to bring immense advantages to both the companies in terms of synergies and optimization of returns and will facilitate any future expansion or diversification in Bina."

BPCL is India's second-largest oil marketing company, with refineries in Mumbai, Kochi and Bina having a combined capacity of around 37 million tonnes per annum.

Also read: BPCL Sells 54.16% Stake In Numaligarh Refinery To Oil India, 4.4% To Engineers India

Its distribution network comprises around 18,000 petrol pumps, 6,600 LPG distributorships, 52 LPG bottling plants, 58 aviation service stations, and 4 cross-country pipelines.

The government is selling its entire stake in BPCL.

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