Oil India has ventured into a Share Purchase Agreement (“SPA”) for the proposed acquisition of 39,84,36,929 equity shares in the share capital of Numaligarh Refinery (a organization primarily engaged in the business of refining of petroleum products) from Bharat Petroleum Corporation.

Alongside, Engineers India has also entered into a SPA and would independently be acquiring 3,21,46,957 equity shares from BPCL pursuant to the SPA.

However,earlier this month, the Privatisation-bound Bharat Petroleum Corporation Ltd (BPCL) has announced that it would exit Numaligarh refinery in Assam by selling its entire stake to a consortium of Oil India Ltd and Engineers India Ltd for Rs 9,876 crore.

The sale of Numaligarh Refinery makes way for privatisation of India's second-largest fuel retailer.

In keeping with the Assam Peace Accord, the government had decided to keep Numaligarh Refinery Ltd (NRL) in the public sector. As part of this, BPCL was to sell its entire 61.65 per cent stake to state-owned firms.

A consortium of Oil India Ltd, Engineers India Ltd, and the Government of Assam expressed interest in buying the stake and the BPCL board on Monday approved the sale.

In a filing to the stock exchanges, the firm states, "The board of directors of BPCL at the meeting held on March 1, 2021, has approved the proposal for sale of entire equity shares of 445.35 crore held by BPCL in NRL to a consortium of OIL and EIL and to Government of Assam.”

The consortium of OIL and Engineers India Ltd had intended to acquire 49 percent and the rest 13.65 percent had been planned to be sold to the Government of Assam.

NRL operates a three million tonnes per annum oil refinery in Assam.Prior to the acquisition, OIL held 26 percent equity in NRL while the Government of Assam has around 12.35 percent.