Companies

BPCL to sign 15-year offtake agreement with Numaligarh refinery

Our Bureau Mumbai | Updated on March 02, 2021

Bharat Petroleum Corporation Ltd (BPCL) will sign a 15-year offtake agreement with Numaligarh Refinery Ltd to source its products after selling the 61 .65% stake in the Assam-based refinery to a consortium of Oil India Limited, Engineers India Ltd and to Assam government for ₹9,876 crore.

“The offtake agreement will be for the entire production of NRL such as diesel, petrol and LPG at existing level of capacity,” N Vijayagopal, Director (Finance), BPCL told media persons on Tuesday.

NRL runs a 3 million tonne (mt) capacity refinery at Numaligarh in Assam.

The Centre has decided to hive off NRL ahead of the planned privatisation of BPCL.

A major portion of the proceeds from NRL stake sale will be used to pay dividend to shareholders, Vijayagopal said.

Published on March 02, 2021

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