• BORL is a 7.8 MMTPA capacity central India oil refinery, located in Bina, Madhya Pradesh
• Since March 2020, BPCL had been holding 63.4 percent while OQ had 36.6 percent equity in the company

New Delhi: Disinvestment-bound Bharat Petroleum Corporation Ltd (BPCL) has paid Rs 2,399.26 crore to OQ, an integrated energy company in Oman, for the purchase of their entire stake in Bharat Oman Refineries Ltd (BORL), thereby completing the stake acquisition process. In a regulatory filing to the stock exchanges on Thursday, BPCL said, "We refer to our earlier intimations dated 15.12.2020, 17.12.2020, 10.02.2021 and 01.04.2021 on the captioned subject and inform you that BPCL has effected the payment of INR 2399.26 crore to OQ S.A.O.C ("OQ" formerly known as Oman Oil Company S.A.O.C.) for the acquisition of 888,613,336 (36.62%) equity shares in Bharat Oman Refineries Ltd(BORL) on 30.6.2021 and the said shares have been transferred to BPCL."

"With this, BORL has become a wholly-owned subsidiary of BPCL," said the filing.

ALSO READ

1. BPCL begins doorstep delivery of diesel in Haryana

2. BPCL trims PRMBS beneficiary employees' list; unions demand withdrawal of decision

Bharat Oman Refineries Ltd is a 7.8 MMTPA capacity central India oil refinery, located in Bina, Madhya Pradesh, which was incorporated in 1994 as a public limited company with equal equity participation of Bharat Petroleum Corporation Limited and OQ (formerly known as OOC). Since March 2020, BPCL had been holding 63.4 percent while OQ had 36.6 percent equity in the company. The government of Madhya Pradesh has a minor stake in the company through compulsorily convertible warrants.

The backdrop

The consolidation exercise comes as the government is set to privatise BPCL by selling its stake to a strategic player. The government has also said that it is hopeful about completing the privatisation of BPCL in current financial year. After a year marred by the COVID-19 pandemic, the Centre is looking to raise Rs 1.75 lakh crore from disinvestment in FY22. Disinvestment of PSUs like BPCL, Air India, CONCOR, SCI are some of the major plans that will account for a large chunk of the overall disinvestment target.

(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)