India divests 53.29% stake in Bharat Petroleum (BPCL) in privatization drive

The Government of India is looking for interested bidders to acquire the 53.29% stake it is divesting in the privatization of the state-owned oil and gas company, Bharat Petroleum (BPCL). 

The sale of the stake in BPCL is expected to raise up to INR600 billion (US$8.477 billion) of investment. Saudi Aramco and other global oil giants such as Rosneft, Kuwait Petroleum, ExxonMobil, Shell, Total and Adnoc, have expressed interest to bid. 

BPCL is based in Mumbai, Maharashtra, India and operates the following refineries:

• Mumbai Refinery: Located near Mumbai, Maharashtra. It has a capacity of 13 million metric tonnes per annum.
• Kochi Refinery: Located near Kochi, Kerala. It has a capacity of 15.5 million metric tonnes per annum.
• Bina Refinery: Located near Bina, Sagar district, Madhya Pradesh. It has a capacity of 6 million metric tonnes per year. This refinery is operated by Bharat Oman Refineries Limited, a joint venture between Bharat Petroleum and Oman Oil Company.
• Numaligarh Refinery: Located near Numaligarh, Golaghat district, Assam. It has a capacity of 3 million metric tonnes per year.

The Department of Investment and Public Asset Management (DIPAM)  is set to hire an adviser for the transaction by November. The valuation of the asset is expected to be completed in the next 50 days.