Oil India Limited (OIL) in consortium with Engineers India Ltd (EIL) will bid for acquiring a 61.65 per cent stake of Bharat Petroleum Corporation Ltd (BPCL) in the Numaligarh Refinery Ltd (NRL). The bid will be submitted through a formal process. The exact percentage of the stake of Oil India and Engineers India will depend on the extent of the right of first offer to be exercised by the Assam government, which holds a 12.35 per cent stake in Numaligarh Refinery. Last year, the Assam government had given a no-objection certificate to the Numaligarh Refinery deal on the condition that another 13.65 per cent stake in Numaligarh Refinery will be sold to the state. This will increase the state government’s stake in the company to 26 per cent.
Numaligarh Refinery is the largest customer of Oil India’s crude produced from its northeastern fields. The acquisition is expected to improve synergy in OIL’s portfolio. The deal is likely to take place before the privatisation process of Bharat Petroleum is over. The sale of Bharat Petroleum is expected to be significant in achieving Rs 1.75 lakh crore disinvestment target set for the new fiscal year, starting April 1, 2021.
Oil India is a public sector undertaking and is a fully integrated exploration and production company in the upstream sector. It is the second largest national oil and gas company in the country. Oil India is engaged in the business of exploration, development, as well as production of crude oil and natural gas, transportation of crude oil and production of LPG. The company already has a 26 per cent stake in Numaligarh Refinery.
Shares of Bharat Petroleum Corporation Limited were last trading 0.47 per cent lower at Rs 430 on the BSE. Shares of BPCL opened the trading session at Rs 435.50, touching an intra day high of Rs 444.70 and an intra day low of Rs 423.40, so far.