Engineers India, Oil India sign deals to buy BPCL’s stake in Numaligarh Refinery

Engineers India Limited and Oil India Limited have entered into share purchase agreements (SPAs) for acquiring the stake of 61.65% held by Bharat Petroleum Corporation Limited (BPCL) in the Numaligarh Refinery in Assam.

As per the SPA, Engineers India will independently acquire more than three crore equity shares from BPCL in the Numaligarh oil refinery for nearly INR7 billion ($96 million).

Oil India Limited will be acquiring more than 39 crore equity shares from BPCL in the oil refinery in Assam for over INR86.75 billion ($1.2 billion). The company already has a stake of 26% in the Numaligarh oil refinery.

Both Engineers India Limited and Oil India Limited are buying the shares in the oil refinery at INR217.75 per unit as per the latest Numaligarh Refinery news.

Engineers India, Oil India sign deals to buy BPCL’s stake in Numaligarh Refinery. Photo courtesy of SatyaPrem from Pixabay.

Recently, BPCL said that its board of directors sanctioned the sale of the company’s stake in the refinery to a consortium of Oil India Limited and Engineers India and to the Assam government. However, the government of Assam, which holds a stake of 12.35% in the Numaligarh oil refinery, did not take part in the sale.

Located in Morangi, Golaghat district, the refinery in Assam has a capacity of three million metric tonnes per year, which is expected to be increased by three times through an expansion project.