Saudi Aramco interested in buying government's stake in BPCL

Source Press
Company Saudi AramcoBharat Petroleum Corporation Limited 
Tags Deal Rumours, Refining & Marketing Activities
Date October 15, 2019

() The Indian government is looking at selling its 53.29 per cent stake in BPCL to a strategic investor.

State-owned Saudi Aramco may be in the fray to buy out Indian government’s stake of Bharat Petroleum Co. ltd, as it gives the oil giant an opportunity to pierce into one of the world’s biggest oil retail markets, sources privy to the matter said.

The Indian government is looking at selling its 53.29 percent stake in BPCLNSE 4.51 % to a strategic investor in the biggest privatisation bid in the history of India.

It aims to garner 1.05 lakh crore in divestment proceeds which includes privatisation of BPCL, Container Corp of India and Shipping Corp of India.
Sources said Aramco currently is evaluating its Indian investments, including its possible partnership with Reliance India Ltd, and views buying out BPCL as a good opportunity.

Aramco, which is currently in the process of an IPO that could value the company at $1.5 trillion to $2 trillion, is eying the Indian market through various possible deals.

It is looking at partnering with Reliance India Ltd in its oil and chemical business and had signed a memorandum of understanding last year along with ADNOC to make an investment in government of India’s Ratnagiri Refinery & Petrochemicals Ltd. (RRPCL).

“Aramco is currently trying to balance its various planned investments in India. It’s is very interested in the Indian market. It will take a call on how to balance BPCL deal and the Reliance partnership, if it decides to go through with them,” one of the source, who did not want to be named, told ET Now.

The sources also said that Aramco may show interest in BPCL transaction advisors when they host roadshows in Middle East soon.

Source: EvaluateEnergy® ©2019 EvaluateEnergy Ltd