OIL-led group bids for Numaligarh Refinery

Oil India Ltd (OIL), in consortium with Engineers India Ltd (EIL), have placed their bid for acquiring 61.65% stake of Bharat Petroleum Corporation Ltd (BPCL) in Numaligarh Refinery Ltd (NRL), persons privy to the development said.

The NRL has been carved out from the BPCL and is not part of assets that is being sold as part of its privatisation plan.

With the submission of the bid, the transaction for Numaligarh refinery may now be targeted for closure before the end of March.

An OIL statement had earlier said that its bid for the NRL will be submitted through a formal process. The exact percentage of the stake of the OIL and the EIL will depend on the extent of Right of First Offer (ROFO) to be exercised by the Assam government which already holds 12.35% stake in the NRL.

Sources indicated that the state government may pick up additional equity in the refinery so that its holding increases to 26% which gives it effective control over the operation of the refinery.

The balance 48% of the BPCL's equity may be divided between the OIL and the EIL with the latter picking up 10% stake.

In the current structure of Numaligarh Refinery, while the BPCL holds 61.65% stake, the OIL holds 26% and the Assam government 12.35%.

The NRL is the largest customer of the OIL's crude produced from its northeastern fields.