BPCL board sanctions stake sale in Numaligarh Refinery for $1.3bn

Bharat Petroleum Corporation Limited (BPCL) said that its board of directors has approved the sale of the company’s stake of 61.65% in the Numaligarh Refinery for INR 98.75 billion ($1.34 billion) to a consortium of Oil India Limited and Engineers India and to the Assam government.

According to BPCL, the sale will be done to only the consortium in case the Assam government does not take part in the transaction. This will be done on the same terms and conditions as approved by BPCL’s board.

BPCL is selling the shares in the Numaligarh Refinery at INR 10 per share.

The deal is subject to the approval of BPCL’s shareholders.

BPCL board sanctions stake sale in Numaligarh Refinery for $1.3bn. Photo courtesy of SatyaPrem from Pixabay.

The Numaligarh Refinery is located in Morangi, Golaghat district in Assam. The oil refinery has a capacity of three million metric tonnes per year.

In January 2019, the Indian government approved the expansion of the Numaligarh Refinery to a capacity of nine million metric tonnes per year.

The other stakeholders of the Numaligarh oil refinery are Oil India Limited (26%) and the Assamese government, which has a stake of 12.35%.