Bharat Petroleum Corporation’s (BPCL) board has approved buying out Oman Oil Company’s stake in the Bina refinery project in Madhya Pradesh on mutually agreeable terms.
The BPCL board also approved merging Bharat Gas Resources (BGRL) with itself.
BPCL holds 63.68 per cent stake in Bharat Oman Refineries (BORL) which builds and operates 7.8 million tonne oil refinery at Bina in Madhya Pradesh.
BPCL incorporated BGRL for handling the natural gas business in June 2018. It won the licence to retail CNG to automobiles and piped natural gas to households and industries in 13 geographical areas under round nine and round 10 of city gas distribution (CGD).
BGRL is also planning to put up an LNG import terminal along the east coast of India. Oman Oil had recently expressed interest to divest its stake in BORL.
BORL became a subsidiary of BPCL in March 2020 when it converted warrants into shares, taking the state-owned refiner’s stake in the erstwhile equal joint venture to 63.38 per cent.
In addition to the equity investment in BORL, BPCL had subscribed to zero per cent compulsorily convertible debentures of Rs 1,000 crore and share warrants of Rs 1,585.68 crore, which on conversion would turn BORL into a subsidiary of BPCL.