Bharat Petroleum Corporation Ltd (BPCL) has signed a sales purchase agreement (SPA) with OQ (formerly Oman Oil Company Ltd.) for the purchase of their entire stake in Bharat Oman Refineries Ltd. (BORL) for ₹2,400 crore.
BPCL runs a 7.8 MMTPA refinery at Bina in Madhya Pradesh.
BORL was incorporated in 1994 with equal equity participation of BPCL and OQ . Since March 2020, BPCL had been holding 63.4% and OQ 36.6% equity in BORL. The Government of Madhya Pradesh has a minor stake through compulsorily convertible warrants.
N. Vijayagopal, director (finance), BPCL, said, “With the acquisition, BPCL will establish control over BORL. This is expected to bring immense advantages to both the companies in terms of synergies and optimisation of returns and will facilitate any future expansion or diversification in Bina.”
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