India: Business Deal BPCL Acquires OQ’s 36 % Stake in Bharat Oman Refineries
Under a sales purchase agreement signed between India’s BPCL and Oman’s OQ, BPCL has acquired OQ’s full stake i.e. 36 % in Bharat Oman Refineries Company Ltd (BORL). With this move, the company has established full control over BORL.
Mumbai/India – Bharat Petroleum Corporation Ltd (BPCL) has recently signed a sales purchase agreement with integrated energy company OQ for purchase of their entire stake in Bharat Oman Refineries Company Ltd (BORL).
BORL was incorporated in 1994 as a Public Limited Company with equal equity participation of Bharat Petroleum Corporation Ltd and OQ (formerly known as OOC). The joint venture owns and operates a 7.8 MMTPA refinery located at Bina in Madhya Pradesh, India. Since March 2020, BPCL has been holding 63.4 % and OQ 36.6 % equity in the company.
The Government of Madhya Pradesh has a minor stake in the company through compulsorily convertible warrants.
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.”