Saudi Aramco still undecided on BPCL stake purchase

Saudi Aramco still undecided on BPCL stake purchase

World”s largest oil company Aramco is yet to make up its mind to participate in disinvestment of Indian fuel refiner and retailer Bharat Petroleum Corporation Ltd (BPCL) where government intends to sell its entire 53.29 per cent stake to a strategic investor.

Sources privy to the development said that Aramco, which kicked off the final phase of its $25 billion IPO on Sunday, is focused on Indian investment primarily to conclude the purchase of 20 per cent stake in Reliance Industries” oil to chemical division and expansion of its upstream business in high growth markets including India. Entering India with a large scale investment in a public sector oil refiner and retailer is not on the horizon as on now, sources said.

When asked specifically on its plan to acquire majority stake in BPCL whether solely or in a consortium, Saudi Aramco declined to comment.

Aramco”s lesser focus on BPCL disinvestment may be a cause of worry for the Indian government that is betting big on the oil giant to takeover its entire equity in BPCL. Read More

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