BPCL Strategic Sale Will Remain on Schedule: Govt

Government is confident that the strategic sale of Bharat Petroleum Corporation Ltd (BPCL) may go through without any further need to extend the bidding deadlines.

The deadline for submitting the Expressions of Interest (EoI) for 52.98 per cent stake in the BPCL will end on July 31.

BPCL disinvestment has received interest from several large global oil and gas companies and a few Indian entities as well. In fact, the process so far has generated close to 100 enquiries in a clear signal that investors remain interested in the maharatna oil PSUs despite the disruptions caused by Covid-19 pandemic, official source privy to the development said.

According to them, Saudi Aramco, Abu Dhabi National Oil Co (Adnoc), Rosneft of Russia and Exxon Mobil intend to participate in the bidding process for the PSU. Indian oil majors are not behind their global counterparts and are also actively pursuing the prospects of bidding for BPCL. Oil-to-telecom major Reliance Industries is understood to have shown interest for the bid.

The deadline for submitting EoIs has been postponed twice and the current deadline ends on July 31. We are confident that EoI will sail through within time with several interested bidders coming into the fray, the sources quoted above said.

While the queries about the sale is a reflection of interest that BPCL disinvestment has interest, it does always amount to investment.

But the queries relating to timing to complete the bids, net worth requirement, what kind of controls investors may have to face, will they have to operate in regulated regime or how the money would have to be brought for the purchase had given confidence that investors remain serious about BPCL.

The disinvestment in BPCL involves the government selling its entire 52.98 per cent stake in the company to a strategic investor with transfer of management control. The Govt has barred PSUs from bidding for BPCL and expects private sector Indian players and global MNCs to bid for its stake. The Centre has allowed prospective bidders with a minimum net worth of $10 billion to present their bids.