OQ, Oman’s integrated energy company, has signed a share purchase agreement with India’s state-run Bharat Petroleum Corporation Limited (BPCL) to sell its entire 36.62 per cent stake in Bharat Oman Refineries Limited (BORL) for R24bn (approximately RO126mn).
‘A share purchase agreement has been signed on March 31, 2021 between BPCL and OQ for BPCL’s acquisition of 36.62 per cent of equity shares in BORL from OQ for a consideration of R23.99bn,’ BPCL said in a disclosure filed to the Bombay Stock Exchange.
BORL owns and operates Bina Refinery, located at Bina in the state of Madhya Pradesh in India. Built as a joint venture between India’s BPCL and the sultanate’s Oman Oil Company (now OQ), the 6mn tonnes per year Bina Refinery was commissioned in May 2011. The capacity of the refinery was further increased to 7.8mn tonnes per year in 2018.
Earlier in December 2020, OQ had said that it was in discussions with BPCL to divest its stake in BORL.
Confirming the signing of the share purchase agreement with BPCL, OQ on its official Twitter handle said, ‘To help drive our businesses towards creating better value from local and international investment portfolio, we signed a share purchase agreement with BPCL to sell our 36.62 per cent share in Bharat Oman Refineries Limited.’
OQ said this divestment is part of a portfolio rationalisation exercise aiming to create better value from its local and international investments.
BPCL was holding a majority 63.38 per cent of equity shares in BORL while OQ owned remaining 36.62 per cent equity shares in BORL. Upon completion of the transaction with OQ, BPCL will hold 100 per cent of equity share capital in BORL.