Bharat Petroleum To Raise $200 Million For Abu Dhabi Asset Purchase


Bharat Petroleum To Raise $200 Million For Abu Dhabi Asset Purchase

Bharat Petroleum Corp. Ltd (BPCL) plans to raise $200 million to fund the acquisition of a 3% share in the Lower Zakum Concession, Offshore Abu Dhabi, two people aware of the development said.

A consortium comprising state-owned Oil and Natural Gas Corp. Ltd (ONGC)’s overseas arm, ONGC Videsh Ltd (OVL), Indian Oil Corp. Ltd (IOCL) and Bharat Petroleum Corp. Ltd’s overseas arm Bharat PetroResources Ltd (BPRL) acquired a 10% stake in the ADNOC Group (Abu Dhabi National Oil Company) owned concession on 11 February. While OVL will hold a 4% stake, BPRL and IOCL will hold 3% each.

“BPCL is raising $200 million through a comfort letter from Standard Chartered Bank and DBS Bank to pay for its Lower Zakum Concession buy. A comfort letter is a kind of soft guarantee that the payment obligation would be met,” a banker aware of the development said on condition of anonymity.

BPCL did not reply to an email sent on 14 February. While DBS Bank declined to comment, Standard Chartered Bank did not reply to an email sent on Wednesday till press time. Read More

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