Bharat Petroleum

Last updated

Bharat Petroleum Corporation Limited
Company type Public
ISIN INE029A01011
Industry Energy: Oil and gas
Founded1976  OOjs UI icon edit-ltr-progressive.svg
Headquarters Mumbai, Maharashtra, India
Key people
G Krishnakumar
(Chairman & MD) [1]
Products
RevenueIncrease2.svg₹509,227 crore (US$61 billion) [2]  (2024)
Increase2.svg₹36,194 crore (US$4.3 billion) [2]  (2024)
Increase2.svg₹26,859 crore (US$3.2 billion) [2]  (2024)
Total assets Increase2.svg₹202,418 crore (US$24 billion) [3]  (2024)
Total equity Increase2.svg₹75,635 crore (US$9.1 billion) [3]  (2024)
Owner Government of India
Number of employees
8,506 permanent and 25,848 contractual (31 March 2024)
Divisions
  • Bharat Petroresources Limited
  • Bharat Gas Resources Limited
  • Bharat Renewable Energy Limited
Subsidiaries
Website www.bharatpetroleum.in OOjs UI icon edit-ltr-progressive.svg

Bharat Petroleum Corporation Limited (BPCL) is an Indian public sector oil and gas company, headquartered in Mumbai. It is India's second-largest government-owned downstream oil producer, whose operations are overseen by the Ministry of Petroleum and Natural Gas. It operates three refineries in Bina, Kochi and Mumbai. [4] BPCL was ranked 309th on the Fortune Global 500 list of the world's biggest corporations in 2020, [5] and 1052nd on Forbes Global 2000 in 2023. [6]

Contents

History

1891 to 1976

The company today known as BPCL started off as the Rangoon Oil and Exploration company set up to explore the new discoveries off Assam and Burma (now Myanmar) during the British colonial rule over India. In 1889 during vast industrial development, an important player in the South Asian market was the Burmah Oil Company. Though incorporated in Scotland in 1886, the company grew out of the enterprises of the Chef Rohit Oil Company, which had been formed in 1871 to refine crude oil produced from primitive hand dug wells in Upper Burma.

In 1928, Asiatic Petroleum Company (India) started cooperation with Burma Oil Company. Asiatic Petroleum was a joint venture of Royal Dutch, Shell and Rothschilds formed to address the monopoly of John D. Rockefeller's Standard Oil, which also operated in India as Esso. This alliance led to the formation of Burmah-Shell Oil Storage and Distributing Company of India Limited. Burmah Shell began its operations with import and marketing of Kerosene. [7]

In the mid-1950s, the company began to sell LPG cylinders to homes in India and further expanded its delivery network. It also marketed kerosene, diesel and petrol in cans in order to reach remote parts of India. In 1951, the Burmah shell began to build a refinery in Trombay (Mahul, Maharashtra) under an agreement with the Government of India.

Nationalisation

A BPCL petrol filling station BPCL petrol filling station.JPG
A BPCL petrol filling station

In 1976, the company was nationalized under the Act on the Nationalisation of Foreign Oil companies ESSO (1974), Burma Shell (1976) and Caltex (1977). [8] On 24 January 1976, the Burmah Shell was taken over by the Government of India to form Bharat Refineries Limited. On 1 August 1977, it was renamed Bharat Petroleum Corporation Limited. It was also the first refinery to process newly found indigenous crude Mumbai High Field.

A BPCL retail outlet in Indore, Madhya Pradesh BPCL Retail Outlet.jpg
A BPCL retail outlet in Indore, Madhya Pradesh
BPCL petrol filling station at Basaveshwaranagara, Bangalore, Karnataka Bpcl basaveshwaranagar.png
BPCL petrol filling station at Basaveshwaranagara, Bangalore, Karnataka

In 2003, the government attempted to privatize the company. However, following a petition by the Centre for Public Interest Litigation, the Supreme Court restrained the Central government from privatizing Hindustan Petroleum and Bharat Petroleum without the approval of Parliament. [9] As counsel for the CPIL, Rajinder Sachar and Prashant Bhushan said that the only way to disinvest in the companies would be to repeal or amend the Acts by which they were nationalized in the 1970s. [10] As a result, the government would need a majority in both houses to push through any privatization. [11]

Parliament enacted the Repealing and Amending Act, 2016 in May 2016 which repealed the legislation that had nationalized the company. [12] In 2017, Bharat Petroleum Corporation Limited (BPCL) received Maharatna status, putting it in the category of government-owned entities in India with the largest market capitalization and consistently high profits. [13] In 2021, BPCL announced plans to invest US$ 4.05 billion in order to improve petrochemical capacity and refining efficiencies, over the next five years. [14]

Operations

Bharat Petroleum operates the following refineries:

They have popular Loyalty Program like Petrocard, Smartfleet.

As of 2018, BPCL was also setting up a Second-generation biofuels refinery at Baulsingha village in Bargarh district, Odisha of 100 kilo litre per day (KLPD) capacity. [17] The plant would be using 2 Lakh tonnes of rice straw to generate fuel. [18]

Subsidiaries

Indraprastha Gas Limited (IGL) , a joint venture between Gas Authority of India Limited (GAIL), Bharat Petroleum Corporation Limited (BPCL) and the Government of Delhi to operate the Delhi City Gas Distribution Project.

Petronet LNG , a joint venture company promoted by the Gas Authority of India Limited (GAIL), Oil and Natural Gas Corporation Limited (ONGC), Indian Oil Corporation Limited (IOC) and Bharat Petroleum Corporation Limited (BPCL) to import LNG and set up LNG terminals in the country.

Bharat Renewable Energy Limited, a joint venture company promoted by BPCL with Nandan Cleantech Limited (Nandan Biomatrix Limited), Hyderabad and Shapoorji Pallonji Group, through their affiliate, S.P. Agri Management Services Pvt.Ltd. specializes in offering Bio diesel plants, ethanol, bio-diesel plants, Karanj (Millettia pinnata), Jatropha and Pongamia (Pongamia Pinnata) plantation services, renewable generation services etc. In 2013 Shapoorji Pallonji Group exited the joint venture. [19]

Ownership

The cabinet had cleared a plan to sell 53.3% of its stake in Bharat Petroleum Corporation (BPCL)[ citation needed ] with the rest owned by Foreign Portfolio Investors (13.7%), Domestic Institutional Investors (12%), Insurance (8.24%) and the balance held by individual share holders. [20] But as of 2024, such a plan is said to be off the table. [21]

Plans of Disinvestment

On 21 November 2019, the Government of India approved the privatization of Bharat Petroleum Corporation Limited (BPCL). [22] The government invited bids for the sale of its 52.98% stake in the company on 7 March 2020. [23] The Government decided to consolidate the businesses of BPCL before privatization starting with the Numaligarh Refinery Ltd. (NRL). The Government decided to keep Numaligarh Refinery Ltd. (NRL) in the public sector, honouring the Assam Peace Accord. In March 2021, Bharat Petroleum Corporation Ltd (BPCL) sold its entire 61.5% stake in Numaligarh Refinery in Assam to a consortium of Oil India Ltd. and Engineers India Ltd. and Government of Assam for ₹9,876 crore. [24] BPCL also acquired a 36.62% stake in Bharat Oman Refineries (BORL) or Bina refinery situated at Bina in Madhya Pradesh, India from OQ company, for ₹2,400 crore. BPCL has been holding 63.4 per cent and OQ 36.6 per cent equity in the company. The Government of Madhya Pradesh has a minor stake in the company through compulsorily convertible warrants. With the acquisition of OQ's entire stake in BORL, BPCL will establish control over BORL. [25] [26]

The Indian Government attempted to sell BPCL during fiscal year 2021–2022. [27] However, the sale of BPCL has been pushed to fiscal year 2022–2023, and it has been reported that the Government is building a new strategy for the sale of the company. [28] In addition to this, it has also been reported that rising oil prices, along with increasing development and use of green energy, is leading to delays in the privatisation process. [29] On June, 12 2024, the Petroleum Minister of India informed that any plans of disinvestment is off the table. [30]

See also

Related Research Articles

<span class="mw-page-title-main">Shipping Corporation of India</span> Indian government-owned shipping company

The Shipping Corporation of India (SCI) is a public sector undertaking that operates and manages vessels servicing both national and international lines. It is under the ownership of the Government of India and under administrative control of the Ministry of Ports, Shipping and Waterways, with its headquarters in Mumbai.

Oil India Limited (OIL) is a central public sector undertaking engaged in the business of exploration, development and production of crude oil and natural gas, transportation of crude oil and production of liquid petroleum gas. The central public sector undertaking is a Maharatna, with the Ministry of Petroleum and Natural Gas overseeing its operations. Headquartered in Duliajan, Assam, the company has its offices in Duliajan, Noida, Guwahati and Jodhpur.

<span class="mw-page-title-main">Petronet LNG</span> Indian natural gas company

Petronet LNG Limited is an Indian oil and gas company formed by the Government of India to import liquefied natural gas (LNG) and set up LNG terminals in the country. It is a joint venture company promoted by the Gas Authority of India Limited (GAIL), Oil and Natural Gas Corporation Limited (ONGC), Indian Oil Corporation Limited (IOC) and Bharat Petroleum Corporation Limited (BPCL). Petronet LNG Limited, one of the companies in the Indian energy sector, has set up the country's first LNG receiving and regasification terminal in Dahej, Gujarat, and another terminal in Kochi, Kerala. While the Dahej terminal has a nominal capacity of 17.5 million tonnes per year, the Kochi terminal has a capacity of 5 million tonnes per year. Plans to build a third LNG terminal in Gangavaram, Andhra Pradesh were dropped in October 2019.

Mumbai Refinery is a oil refinery located in Mumbai, India.

<span class="mw-page-title-main">Kochi Refineries</span> Crude oil refinery of Indian city of Kochi

Kochi Refinery Limited (KRL) is a crude oil refinery in the city of Kochi in Kerala, India. It is the largest public sector refinery in India with a production capacity of 15.5 million tonnes per year. Formerly known as Cochin Refineries Limited and later renamed as Kochi Refineries Limited, it was acquired by Bharat Petroleum Corporation Limited in the year 2006. The refinery is situated at Ambalamugal, around 12 km (7.5 mi) east of the city centre.

<span class="mw-page-title-main">Oil and Natural Gas Corporation</span> Indian crude oil and natural gas producer

The Oil and Natural Gas Corporation Limited (ONGC) is an Indian central public sector undertaking which is the largest government-owned oil and gas explorer and producer in the country. It accounts for around 70 percent of India's domestic production of crude oil and around 84 percent of natural gas. Headquartered in Delhi, ONGC is under the ownership of the Government of India and administration of Ministry of Petroleum and Natural Gas. It was founded on 14 August 1956 by the Government of India. In November 2010, the Government of India conferred the Maharatna status to ONGC.

<span class="mw-page-title-main">Hindustan Petroleum</span> Indian public sector oil and gas company

Hindustan Petroleum Corporation Limited (HPCL) is an Indian public sector undertaking in petroleum and natural gas industry, headquartered in Mumbai. It is a subsidiary of the Oil and Natural Gas Corporation (ONGC), which is owned by the Government of India and under the administration of Ministry of Petroleum and Natural Gas.

<span class="mw-page-title-main">Ministry of Petroleum and Natural Gas</span> Ministry of government of India

The Ministry of Petroleum and Natural Gas (MOP&NG) is a ministry of the Government of India responsible for the exploration, production, refining, distribution, marketing, import, export, and conservation of petroleum, natural gas, petroleum products, and liquefied natural gas in the country. The ministry is headed by Cabinet minister Hardeep Singh Puri, while its secretary is Pankaj Jain, a 1990-batch IAS officer of the Assam-Meghalaya cadre. Dharmendra Pradhan, who served from 26 May 2014 to 7 July 2021, is its longest serving minister till date.

Gujarat State Petroleum Corporation Ltd (GSPCL) is a state government-owned group of oil and gas exploration, production and distribution companies based in Gujarat, India. It is India's only state government-owned oil and gas company under the ownership of Department of Energy and Petrochemicals, Government of Gujarat. GSPC was incorporated in 1979 as a petrochemical company.

Numaligarh is a town in the Golaghat district of Assam, India. It is situated at a distance of 32 km from Golaghat town, 265 km from Guwahati, 51 km from Jorhat and 6 km from Morangi.

<span class="mw-page-title-main">GAIL</span> Central Public Sector Undertaking

GAIL (India) Limited is an Indian state-owned energy corporation with primary interests in the trade, transmission and production distribution of natural gas. GAIL also has interests in the exploration and production solar and wind power, telecom and telemetry services (GAILTEL) and electricity generation. GAIL was founded as the Gas Authority of India Ltd. in August 1984 under the Ministry of Petroleum and Natural Gas to build, operate and maintain the HVJ Gas Pipeline. On 1 February 2013, the Indian government conferred GAIL with Maharatna status along with 11 other Public Sector Undertakings (PSUs).

<span class="mw-page-title-main">OQ (company)</span> Omani energy company

OQ, formerly known as Oman Oil Company, is an energy investment company headquartered in Muscat, Oman. It is a wholly owned subsidiary of the Government of Oman through the Oman Investment Authority.

The history of the Indian oil industry extends back to the period of the British Raj, at a time when petroleum first became a primary global energy source.

Bharat Oman Refineries Limited (BORL) which is under the ownership of Ministry of Petroleum and Natural Gas of the government of India. It owns and operates Bina Refinery, located at Bina in the Sagar of the state of Madhya Pradesh in India. The company was incorporated as a joint venture between Bharat Petroleum Corporation (BPCL) and Oman Oil Company Ltd. Since 2021, it is a wholly owned subsidiary of BPCL. The Bina Refinery was commissioned in 11 May 2011 with an annual capacity of 6 million tonnes. The capacity of the refinery was further enhanced to 7.8 million tonnes per year in 2018.

<span class="mw-page-title-main">Bina Refinery</span> Oil refinery

Bina Refinery is an oil refinery located at Bina in the Bina-etawa district of Madhya Pradesh, India. It is owned and operated by Bharat Oman Refinery Limited, a wholly owned subsidiary of Bharat Petroleum Corporation Limited. As of 2013, the capacity of the refinery was 6 million metric tonnes per annum or 43,978,597.06 barrels per annum.

The Numaligarh Refinery is a division of Oil India Limited which is under the ownership of Ministry of Petroleum and Natural Gas, Government of India. It is located at Numaligarh, Golaghat district, Assam in India. Numaligarh Refinery Limited (NRL) was a division of BPCL. It opened in 1999. The commercial production commenced from 1st October, 2000.

Kandla-Gorakhpur LPG pipeline (KGPL) is an under-construction gas pipeline project in India. It has a total length of 2,805 kilometres (1,743 mi) stretching from Kandla port in Gujarat to the city of Gorakhpur in Uttar Pradesh via Madhya Pradesh. The project cost is estimated to be ₹9,000-10,000 crore. It is constructed by IHB Limited, a joint venture company comprising three PSUs in India: the Indian Oil Corporation (IOCL), the Hindustan Petroleum (HPCL), and the Bharat Petroleum (BPCL). The pipeline connects refineries to liquefied petroleum gas (LPG) bottling plants.

Bharat PetroResources (BPRL) is a wholly-owned subsidiary of Bharat Petroleum Corporation, a central public sector undertaking company functioning under the Ministry of Petroleum and Natural Gas, Government of India. It is engaged in the refining and marketing of petroleum products and is recognized as Maharatna as well as a Fortune Global 500 company.

Bharat Gas Resources Limited (BGRL) is a wholly-owned subsidiary of Bharat Petroleum Corporation Limited (BPCL), India's second-largest oil marketing company led by the Ministry of Petroleum and Natural Gas, Government of India. It was amalgamated with the parent with effect from 16 August 2022. The Corporate Affairs Ministry issued the final order on August 8, 2022, approving the scheme of BGRL's amalgamation with BPCL.

References

  1. ↑ "Bharat Petroleum Website Board of Directors".
  2. 1 2 3 "Bharat Petroleum Corporation Consolidated Profit & Loss account, Bharat Petroleum Corporation Financial Statement & Accounts" (PDF). www.bseindia.com. Retrieved 22 May 2023.
  3. 1 2 "Bharat Petroleum Corporation Consolidated Balance Sheet, Bharat Petroleum Corporation Financial Statement & Accounts" (PDF). www.bseindia.com. Retrieved 22 May 2023.
  4. ↑ "About BPCL - our journey". BPCL Official website. BPCL. Archived from the original on 11 October 2018. Retrieved 11 October 2018.
  5. ↑ "Global 500" . Fortune. Retrieved 20 May 2021.
  6. ↑ "The Global 2000 2023". Forbes. Retrieved 9 May 2023.
  7. ↑ "The history and journey of BPCL". BPCL. Archived from the original on 11 October 2018. Retrieved 11 October 2018.
  8. ↑ "SC stays disinvestment in HPCL, BPCL". The Tribune. 17 September 2003. Archived from the original on 2 December 2008. Retrieved 11 October 2018.
  9. ↑ SAMANWAYA RAUTRAY AND PHEROZE L. VINCENT (4 March 2011). "Feather in cap for graft fighters". The Telegraph. Archived from the original on 9 May 2011. Retrieved 26 April 2012.
  10. ↑ Ramakrishna, G. V. (2004). Two Score and Ten: My Experiences in Government. Academic Foundation. p. 301. ISBN   8171883397.
  11. ↑ Gopal Ganesh (2008). Privatisation And Labour Restructuring. Academic Foundation. p. 136. ISBN   978-8171886340.
  12. ↑ "BPCL nationalisation Act repealed in 2016; privatisation way clear". Archived from the original on 8 October 2019. Retrieved 8 October 2019.
  13. ↑ "BPCL gets Maharatna status; shares rise over 4%". The Economic Times. 12 September 2017. Archived from the original on 27 March 2019. Retrieved 28 December 2018.
  14. ↑ "Chemical Industry, Chemicals Manufacturers and Exporters in India - IBEF". India Brand Equity Foundation. May 2022. Retrieved 14 June 2022.
  15. ↑ "Bharat Petroleum | Energising Environment | Refineries | Mumbai Refinery". Archived from the original on 19 September 2012. Retrieved 8 October 2012.
  16. ↑ "Integrated expansion project boosts BPCL-Kochi Refinery". 2 May 2017.
  17. ↑ "BPCL gets green nod for Rs 747 cr ethanol project in Odisha". Economic Times. 12 August 2018. Retrieved 24 November 2020.
  18. ↑ Singha, Minati (7 October 2018). "BPCL to set up country's first biofuel plant at Bargarh district in Odisha". Times of India. Retrieved 24 November 2020.
  19. ↑ Pathak, Kalpana (23 September 2013). "Shapoorji Pallonji to exit renewable energy venture floated with BPCL". Business Standard India. Retrieved 3 May 2021.
  20. ↑ "Bharat Petroleum Corporation Ltd financial results and price chart - Screener". www.screener.in. Retrieved 30 August 2022.
  21. ↑ "Modi 3.0: BPCL privatisation completely off the table, high revenue PSUs need not be sold, says Hardeep Singh Puri". 11 June 2024.
  22. ↑ Roychoudhury, Arup (21 November 2019). "Privatisation push: Cabinet approves strategic sale of BPCL, 4 other PSUs". Business Standard India. Archived from the original on 23 November 2019. Retrieved 23 November 2019.
  23. ↑ "Govt invites bids for BPCL, to sell full 52.98% stake in company". Moneycontrol. 7 March 2020. Retrieved 7 March 2020.
  24. ↑ "BPCL offloads entire 61.5% stake in Numaligarh Refinery for Rs 9,876 crore". www.businesstoday.in. 26 March 2021. Retrieved 3 May 2021.
  25. ↑ "India's Bharat Petroleum buys OQ's entire in Bina refinery". www.hydrocarbons-technology.com. Retrieved 3 May 2021.
  26. ↑ "BPCL Acquires Oman's 36.6% Stake In Bina Refinery". Moneycontrol. 31 March 2021. Retrieved 3 May 2021.
  27. ↑ Moneycontrol News (17 November 2021). "Govt will privatise 5-6 companies in 2021-22, including BPCL: DIPAM Secretary". Moneycontrol. Retrieved 7 May 2022.
  28. ↑ Batra, Shubham (5 May 2022). "Why Modi govt's BPCL privatisation process ran out of gas and is back to the drawing board". ThePrint. Retrieved 7 May 2022.
  29. ↑ Aulakh, Gulveen (22 April 2022). "Centre weighs going back to drawing board on BPCL sale". mint. Retrieved 7 May 2022.
  30. ↑ "Modi 3.0: BPCL privatisation completely off the table, high revenue PSUs need not be sold, says Hardeep Singh Puri". 11 June 2024.
  31. ↑ "Sonia to lay foundation for Rajiv Gandhi Petroleum Institute in Rae Bareli | TopNews". Archived from the original on 9 May 2018. Retrieved 20 October 2016.