Bharat Petroleum agrees to buy out OQ’s stake in Indian refinery

MUSCAT, DEC 18 - Indian public sector oil and gas giant Bharat Petroleum Corporation Ltd (BPCL) announced on Thursday that its board has approved buying out the stake of OQ, the Sultanate’s integrated energy group, in a refinery project in the Indian state of Madhya Pradesh. Muscat headquartered OQ (formerly known as Oman Oil and Orpic Group) holds 39.62 per cent of equity shares in Bharat Oman Refineries Limited (BORL), which owns and operates a 7.8 million tonne capacity refinery at Bina. BPCL holds the balance 63.68 per cent stake in the mammoth refinery complex which was commissioned in May 2011. In filings to local stock exchanges, BPCL said its board “accorded its approval for acquisition of 888.6 million (39.62 per cent) of equity shares in Bharat Oman Refineries Ltd from OQ SAOC (formerly known as Oman Oil Company) subject to finalisation of definitive agreement between parties”. Earlier last week, OQ — the Sultanate’s refining and petrochemicals flagship — had expressed interest in divesting its stake in the Indian refinery company. “For the purpose of rationalising our local and international portfolio to fuel growth in our core business and achieve set 2030 targets, we are currently in discussions with our partner Bharat Petroleum Corporation Ltd (BPCL) on potential divestment of our shares in Bharat Oman Refineries Limited (BORL),” OQ stated on Tuesday.