State-run Bharat Petroleum Corporation Ltd. (BPCL) has consolidated its ownership in Brazilian oil and gas company IBV Brasil Petroleo Ltda after its overseas arm acquired the remaining minority stake in the company.
According to an exchange filing, BPCL's wholly owned subsidiary, BPRL Ventures BV, has acquired a 39.1% stake in IBV Brasil Petroleo for Rs 2,312 crore.
Following the transaction, BPRL Ventures BV's shareholding in IBV Brasil Petroleo has increased to 100% from 60.86%, making the Brazilian company a wholly owned subsidiary of BPCL's overseas investment arm.
The acquisition marks a strategic move by BPCL to strengthen its international upstream portfolio by taking full control of the Brazilian oil and gas asset.
IBV Brasil Petroleo is involved in upstream hydrocarbon exploration and production activities in Brazil, one of the world's key offshore oil-producing regions. Full ownership is expected to provide BPCL with greater operational flexibility, improved decision-making and complete access to the company's future cash flows and development opportunities.
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The acquisition has been executed through BPRL Ventures BV, BPCL's overseas investment vehicle that holds the company's international exploration and production assets.
With the completion of the transaction, IBV Brasil Petroleo will become a wholly owned subsidiary of BPRL Ventures BV, further strengthening BPCL's presence in overseas energy assets as it seeks to diversify its upstream portfolio beyond India.
The company disclosed the acquisition in a regulatory filing but did not provide additional details regarding the funding of the transaction or the expected financial impact.
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