Saudi Aramco may bid for India government’s stake in state-owned Indian oil refining and marketing company, Bharat Petroleum Corporation Ltd (BPCL), which is slated for privatisation soon.
Vast wealth and the promise of dramatic change make for cautious optimism concerning Saudi Arabia, the chief executive…1979 Views | the publication reaches you by | Saudi Arabia Today
“Saudi Aramco currently is evaluating its Indian investments, including its possible partnership with Reliance India Ltd, and views buying out BPCL as a good opportunity,” Indian business TV channel ET Now reported on Tuesday, quoting unnamed sources.
Saudi Aramco is expected to show its interest in BPCL to the latter’s transaction advisors when they host roadshows in the Middle East soon.
“Saudi Aramco is currently trying to balance its various planned investments in India. It’s very interested in the Indian market. It will take a call on how to balance BPCL deal and the Reliance partnership, if it decides to go through .. with them,” ET Now said.
“For any international oil company intending to have a presence in the Indian market, BPCL will be a good bet, Tsundru Muralidhar, a petroleum sector expert and independent consultant told Arabian Business
“If Saudi Aramco is able to successfully bid for the entire Indian government’s stake in BPCL, it will straight away provide it with sizeable hold in the vast Indian oil retail market,” Muralidhar added.
For Saudi Aramco, BPCL would be a third potential investment opportunity in India.
It has recently entered into an in-principle agreement with Mukesh Ambani-led Reliance group to acquire 20 percent stake in the refining and petrochemical business of Relinance Industries.
The Saudi energy major, along with Abu Dhabi National Oil Company (ADNOC) is also a 50 percent partner in Ratnagiri Refinery & Petrochemicals Ltd (RRPL).
Apart from BPCL, Container Corporation of India and Shipping Corp of India are the other two big state-owned companies in which the Indian government proposes to divest its stake.
India’s finance ministry expects to raise about $14.7 billion through the proposed government stake sales in the state-run companies.
150 take part through Watani Al Emarat via the ‘Your City Needs You’ initiative Over 150 volunteers –…1717 Views | the publication reaches you by | Saudi Arabia Today
Do you have information you want to reach our readers?