Following buying out Oman Oil Company’s shares in the Bina refinery project for about Rs 2,400 crore last year, state-owned Bharat Petroleum Corporation (BPCL) has amalgamated, effective July 1, its wholly-owned subsidiary Bharat Oman Refineries (BORL), with itself.
BORL owns and operates a 7.8 million tonnes oil refinery in Madhya Pradesh. Along with Bina, BPCL’s refineries in Mumbai and Kochi have a combined refining capacity of around 35.3 million tonnes. Bina processes 47 types of crudes.
“With the amalgamation of Bina refinery, we will build the capabilities to compete more effectively and profitably in the fast-changing energy marketplace,” said BPCL CMD Arun Kumar Singh in a statement.
The amalgamation is expected to be mutually beneficial to both companies, the company said. While BPCL and its group companies have presence in the upstream, refining, and downstream value chain of oil and gas industry, BORL provides product security and logistics advantage in northern and central India, through a network of pipelines.
BPCL expects to reap benefits of cost optimisation on purchase of crude oil, flexibility in crude feedstock selection, optimisation in production planning, product mix for the refineries. Bina refinery will have an unrestricted access to BPCL’s marketing network to evacuate its products.