BPCL to get full ownership of Brazil oil JV after buying Videocon stake

BPCL's indirect subsidiary, BPRL Ventures BV, will acquire the remaining 34.6% stake from Videocon in their Brazil-based oil and gas joint venture, IBV Brazil Petroleo Limitada, to gain full ownership, supporting India's energy security.

Bharat Petroleum Corporation Limited (BPCL) on Wednesday said its indirect wholly owned subsidiary, BPRL Ventures BV, has signed definitive agreements to acquire the remaining 34.6 per cent stake held by Videocon Energy Brazil Ltd (VEBL) in IBV Brazil Petroleo Limitada.

It will help BPCL take full ownership of its Brazil-based oil and gas joint venture after the transaction receives the required registration from authorities in Brazil.

Details of the Acquisition

BPCL said the acquisition involves the entire shareholding held by Videocon Energy Brazil Limited (VEBL) in IBV Brazil Petroleo Limitada and is being carried out under the Corporate Insolvency Resolution Process of VOVL Ltd.

"We hereby inform you that BPRL Ventures BV has now executed definitive agreements for the acquisition of the entire shareholding of VEBL in IBV Brazil Petroleo Limitada, in accordance with the Corporate Insolvency Resolution process of VOVL," the company said in a stock exchange filing.

BPCL said all approvals required from the Government of India for the transaction have already been received.

The company said BPRL Ventures BV held 65.40 per cent of IBV Brazil Petroleo Limitada immediately before signing the definitive agreements.

"On completion of the aforesaid acquisition, IBV Brazil Petroleo Limitada shall become a wholly owned subsidiary of BPRL Ventures BV," it added.

Strategic Importance and Next Steps

The acquisition, however, is still subject to the necessary registration by the appropriate authorities in Brazil.

"IBV Brazil Petroleo Limitada holds participating interests in oil and gas concessions in Brazil including BM-Seal-11 concession, which is currently progressing with development activities and the aforementioned transaction will support the energy security of the nation," the filing said.

The company said it will disclose further details of the acquisition after the required registrations for the transaction are completed.

The transaction follows an earlier order of the National Company Law Tribunal (NCLT), which had approved the acquisition of VEBL's stake in the joint venture as part of the insolvency resolution process of VOVL Ltd, the filing added. (ANI)

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