Government sources said the BORL became a subsidiary of BPCL in March this year and the next step now is to convert it into a 100 per cent subsidiary before government stake in the company is sold to a strategic partner.
BPCL and OQ were 50:26 joint venture partners in the BORL till March when BPCL converted 13 per cent of its earlier investment made in compulsorily convertible debentures and share warrants of the BORL or Bina refinery. This made the BORL a subsidiary of BPCL as its stake in the refinery increased to 63 per cent from 50 per cent earlier.
The investment in convertible debenture was equivalent to 24 per cent additional equity stake in the BORL. Sources said, if BPCL converts the remaining 11 per cent of convertible debentures to equity, its holding will increase to 74 per cent given that OQ has not shown interest in increasing stake in the BORL by putting in additional equity. This will leave 26 per cent equity with OQ that the company will negotiate to buy to complete 100 per cent acquisition of Bina Refinery.
OQ could not be reached for comments. The refinery has expanded its capacity from 6 million tonne (mt) per annum to 15 million tonne in two phases.