Snapshot : With the amalgamation of Bina Refinery, BPCL aims to build the capabilities to compete more effectively and profitably in the fast changing energy marketplace.
Bharat Petroleum Corporation Limited (BPCL), one of the leading companies in the petroleum sector in India, on 4 July announced the amalgamation of its subsidiary refinery Bharat Oman Refineries Limited (BORL), in Bina with itself, bringing synergy in many ways.
The board of directors of the company (BPCL) at its meeting held on 21 October 2021, had considered and approved the Scheme of Amalgamation of Bharat Oman Refineries Limited with the company.
BPCL and its group companies have a significant presence in the upstream, refining, and downstream value chain of oil and gas industry while BORL provides product security and logistics advantage in Northern and Central India, through a network of pipelines. Bina Refinery is therefore of strategic importance to BPCL in its efforts to meet the demand for petroleum products in the hinterland.
“As the energy landscape undergoes massive changes, BPCL has formulated definitive plans to expand its footprints across the energy sector and diversify for future growth and sustainability. With the amalgamation of Bina Refinery we will build the capabilities to compete more effectively and profitably in the fast changing energy marketplace”, said Arun Kumar Singh, chairman and managing director at BPCL.
BPCL
Fortune Global 500 Company, Bharat Petroleum is the second largest Indian oil marketing company and one of the premier integrated energy companies in India, engaged in refining of crude oil and marketing of petroleum products, with a significant presence in the upstream and downstream sectors of the oil and gas industry.
The company attained the coveted Maharatna status, joining the elite club of companies having greater operational and financial autonomy.
Bharat Petroleum’s Refineries at Mumbai and Kochi and subsidiary Bharat Oman Refineries Limited, at Bina, Madhya Pradesh have a combined refining capacity of around 35.3 MMTPA.
Its marketing infrastructure includes a network of installations, depots, energy stations, aviation service stations and LPG distributors.
Its distribution network comprises over 20,000 energy stations, over 6,200 LPG distributorships, 733 lubes distributorships, and 123 POL storage locations, 54 LPG bottling plants, 60 aviation service stations, 4 lube blending plants and 4 cross-country pipelines.
Bina Refinery, a versatile refinery, processes 47 types of crudes and has recently started production of mineral turpentine oil, as well. It boasts of an integrated full conversion hydrocracker and diesel hydro-treatre, which is the first of its kind in India and a delayed coker unit to upgrade bottoms of the barrel.
Post merger, Bina Refinery will have unrestricted access to BPCL’s marketing network to evacuate its products. Several renewable energy projects, 1.2 MMTPA ethylene cracker unit and petrochemical infrastructure have been envisaged for the large land parcel, available with Bina Refinery.
These projects being cost intensive will get quicker financial closure, after the amalgamation. Additionally, they will also have access to BPCL’s support functions, business processes and talent pool.