BPCL gains after its consortium with Oil India & IOCL acquires stake in Russian company

BPCL rose 0.22% to Rs 1,006.95 at 11:00 IST on BSE after the company's subsidiary along with Oil India and Indian Oil Corporation acting jointly as the Indian consortium signed agreement to acquire stake in JSC Vankorneft.

The separate announcements were made by BPCL, Indian Oil Corporation (IOCL) and Oil India in this regard on Saturday, 18 June 2016

Meanwhile, the S&P BSE Sensex was up 47.52 points or 0.18% at 26,673.43.

On BSE, so far 50,930 shares were traded in the counter as against average daily volume of 87,945 shares in the past one quarter. The stock hit a high of Rs 1,010.10 and a low of Rs 994.95 so far during the day. The stock had hit a record high of Rs 1,032 on 3 June 2016. The stock had hit a 52-week low of Rs 732.20 on 23 February 2016. The stock had outperformed the market over the past one month till 17 June 2016, rising 6.54% compared with 3.31% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 16.47% as against Sensex's 7.9% rise.

The large-cap company has equity capital of Rs 723.08 crore. Face value per share is Rs 10.

BPCL said that Bharat PetroResources (BPRL), a 100% subsidiary and exploration and production arm of BPCL, along with Oil India and Indian Oil Corporation (IOCL), acting jointly as the Indian consortium, signed definitive agreements to acquire through a joint venture company formed by their wholly owned subsidiaries in Singapore, upto 23.9% shares of the charter capital of JSC Vankorneft, a company organised under the laws of the Russian Federation from Rosneft Oil Company (Rosneft). JSC Vankorneft is the owner of Vankor and North Vankor Field licenses in Russia. Rosneft is a National Oil Company of Russia. The acquisition is subject to relevant Board, Government and regulatory approvals and is expected to close by September 2016.

Rosneft Oil Company holds about 85% shares while ONGC Videsh, through its subsidiary holds about 15% shares in JSC Vankorneft. Vankor field, located in East Siberia is Russia's second largest field by production and accounts for around 4% of Russian production and currently producing oil at a level of approximately 4.22 lakh barrels of oil per day. In 2015, the Vankor field produced 22 million tons of oil and 8.71 billion cubic metres (BCM) of gas.

Meanwhile, Oil India (up 0.56%) and ONGC (up 1%) gained. IOCL declined 0.27%. With the closure of Vankor deal, IOCL's equity oil portfolio will go up by 1.6 million metric tonne (MMT) per annum.

BPCL's net profit fell 10.6% to Rs 2549.08 crore on 14% decline in net sales to Rs 44145.54 crore in Q4 March 2016 over Q4 March 2015.

BPCL is a state-run oil refining-cum-marketing company. The Government of India currently holds 54.93% stake in BPCL (as per the shareholding pattern as on 31 March 2016).

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