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Strategic sale of BPCL: Roadshows to begin in US, UK, Dubai from Dec 13

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New Delhi: Roadshows for the strategic sale of BPCL are set to start in London (UK), the US and Dubai on Friday led by Department of Investment and Public Asset Management (DIPAM) and the Petroleum Ministry, sources said. Ministry officials will also hold meetings with prospective investors and their feedback and concerns will be used to prepare the expression of interest for the strategic sale of BPCL, sources added.

The government is looking to offload its 53.29 percent stake in BPCL through strategic sale. BPCL will be a lucrative offer for global players in the oil sector because it will come with widespread assets and will give them access to the retail fuel market in India which is one of the fastest-growing markets in the world.

BPCL refineries and petrol pumps

BPCL operates four refineries at Mumbai, Kochi, Bina in Madhya Pradesh and Numaligarh in Assam with a combined capacity to convert 38.3 million tonnes of crude oil into fuel.
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Numaligarh Refinery, however, will not be disinvested because it was established under Assam Accord. BPCL has 15,078 petrol pumps and 6,004 LPG distributors across the country.

How much could BPCL strategic sale fetch?

The asset valuation of the state-run refiner and retailer is still going on and there’s no official figure in the public domain. The strategic sale of BPCL is expected to fetch the government a total of Rs 1 lakh crore, based on market capitalisation. However, the Federation of Oil PSU Officers (FOPO) has claimed that the true value of BPCL is over Rs 9 lakh crore.

Who are BPCL’s suitors?

The news comes just days after BJP oil expert Narendra Taneja had said in an interview to a Hindi monthly magazine that India makes for an attractive destination for any global oil major to invest in because in the time to come, the energy consumption in the country is only going to rise.

“There aren’t many companies that have the financial wherewithal to buy BPCL. And most of these companies are national oil companies in their respective countries, the likes of Saudi Aramco and ADNOC. The rest of the companies who have shown an interest are private oil companies that are considered global oil majors in the sector,” he had said.

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