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.