Bharat Petroleum (BPCL) has announced the sale of its entire stake in the Numaligarh Refinery, located in the Indian state of Assam, for Rs98.75bn ($1.35bn).
A consortium made up of Oil India and Engineers India will purchase BPCL’s 61.65% stake in the refinery.
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In a filing with the BSE, BPCL said that the Assam Government is also expected to take part in the sale transaction alongside the consortium.
The public sector oil and gas firm will sell its 45.3 million shares in the Numaligarh Refinery at Rs10 ($0.14) per share.
The sale, which has been cleared by BPCL’s board of directors, currently awaits approval from the company’s shareholders.
The move is considered as BPCL’s first step towards divestment of its assets.
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By GlobalDataOil India and the Assam Government currently have 26% and 12.35% stakes, respectively, in the oil refinery located in the Golaghat district.
In the financial year ended 31 March 2020, the Numaligarh Refinery registered Rs142.44bn ($1.94bn) in total income.
The Numaligarh Refinery, which started production in 2000, has a capacity of three million metric tonnes per year (MMTPA).
It produces LPG, naphtha, motor spirit, aviation turbine fuel, raw petroleum coke, superior kerosene oil, calcined petroleum coke, and high speed diesel, among others.
Meanwhile, Numaligarh Refinery Limited, a joint venture between BPCL, Oil India and the Government of Assam, is expanding its refining capacity to 9 million tonnes a year at an investment of Rs225.9m ($4.18bn) by the end of 2024.
