Bharat Petroleum
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Bharat Petroleum Corporation Limited (BPCL) is an Indian central public sector undertaking under the
ownership Ownership is the state or fact of legal possession and control over property, which may be any asset, tangible or intangible. Ownership can involve multiple rights, collectively referred to as title, which may be separated and held by different ...
of
Ministry of Petroleum and Natural Gas The Ministry of Petroleum and Natural Gas (MOP&NG) is a ministry of the government of India responsible for the exploration, production, refining, distribution, marketing, import, export, and conservation of petroleum, natural gas, petroleum ...
,
Government of India The Government of India (ISO: ; often abbreviated as GoI), known as the Union Government or Central Government but often simply as the Centre, is the national government of the Republic of India, a federal democracy located in South Asia, c ...
. It operates three refineries in Bina,
Kochi Kochi (), also known as Cochin ( ) ( the official name until 1996) is a major port city on the Malabar Coast of India bordering the Laccadive Sea, which is a part of the Arabian Sea. It is part of the district of Ernakulam in the state of K ...
and
Mumbai Mumbai (, ; also known as Bombay — the official name until 1995) is the capital city of the Indian state of Maharashtra and the ''de facto'' financial centre of India. According to the United Nations, as of 2018, Mumbai is the second- ...
. BPCL is India's second-largest government-owned downstream oil producer, whose operations are overseen by the
Ministry of Petroleum and Natural Gas The Ministry of Petroleum and Natural Gas (MOP&NG) is a ministry of the government of India responsible for the exploration, production, refining, distribution, marketing, import, export, and conservation of petroleum, natural gas, petroleum ...
. It was ranked 309th on the 2020 ''
Fortune Fortune may refer to: General * Fortuna or Fortune, the Roman goddess of luck * Luck * Wealth * Fortune, a prediction made in fortune-telling * Fortune, in a fortune cookie Arts and entertainment Film and television * ''The Fortune'' (1931 film) ...
'' list of the world's biggest
public sector undertaking A state-owned enterprise (SOE) is a government entity which is established or nationalised by the ''national government'' or ''provincial government'' by an executive order or an act of legislation in order to earn profit for the governmen ...
s, and 792nd on Forbes's 2021 "Global 2000" list.


History


1891 to 1976

The company today known as BPCL started off as Rangoon Oil and Exploration company set up to explore the new discoveries off Assam and Burma during the British colonial rule over India. In 1889 during vast industrial development, an important player in the South Asian market was the
Burmah Oil Company The Burmah Oil Company was a leading British oil company which was once a constituent of the FTSE 100 Index. In 1966, Castrol was acquired by Burmah, which was renamed "Burmah-Castrol". BP Amoco (now BP) purchased the company in 2000. History ...
. Though incorporated in Scotland in 1886, the company grew out of the enterprises of the Chef Rohit Oil Company, which had been formed in 1871 to refine crude oil produced from primitive hand dug wells in Upper Burma. In 1928,
Asiatic Petroleum Company Asiatic Petroleum Company (APC) was a joint venture between the Shell and Royal Dutch oil companies founded in 1903. It operated in Asia in the early twentieth century. The corporate headquarters were on The Bund in Shanghai, China. The division ...
(India) started cooperation with Burma oil company. Asiatic Petroleum was a joint venture of Royal Dutch, Shell and Rothschilds formed to address the monopoly of John D Rockefeller's
Standard Oil Standard Oil Company, Inc., was an American oil production, transportation, refining, and marketing company that operated from 1870 to 1911. At its height, Standard Oil was the largest petroleum company in the world, and its success made its co-f ...
, which also operated in India as
Esso Esso () is a trading name for ExxonMobil. Originally, the name was primarily used by its predecessor Standard Oil of New Jersey after the breakup of the original Standard Oil company in 1911. The company adopted the name "Esso" (the phonetic p ...
. This alliance led to the formation of Burmah-Shell Oil Storage and Distributing Company of India Limited. Burmah Shell began its operations with import and marketing of Kerosene. In the mid-1950s, the company began to sell LPG cylinders to homes in India and further expanded its delivery network. It also marketed
kerosene Kerosene, paraffin, or lamp oil is a combustible hydrocarbon liquid which is derived from petroleum. It is widely used as a fuel in aviation as well as households. Its name derives from el, κηρός (''keros'') meaning "wax", and was regi ...
,
diesel Diesel may refer to: * Diesel engine, an internal combustion engine where ignition is caused by compression * Diesel fuel, a liquid fuel used in diesel engines * Diesel locomotive, a railway locomotive in which the prime mover is a diesel engin ...
and petrol in cans in order to reach remote parts of India. In 1951, the Burmah shell began to build a
refinery A refinery is a production facility composed of a group of chemical engineering unit processes and unit operations refining certain materials or converting raw material into products of value. Types of refineries Different types of refineries ...
in
Trombay Trombay is an eastern suburb in Bombay (Mumbai), India. History Trombay was called Neat's Tongue because of its shape. Once, it was an island nearly 5 km East of Mumbai and was about 8 km in length and 8 km in width. The island ...
(Mahul, Maharashtra) under an agreement with the Government of India.


Nationalisation

In 1976, the company was nationalized under the Act on the Nationalisation of Foreign Oil companies ESSO (1974), Burma Shell (1976) and Caltex (1977). On 24 January 1976, the Burmah Shell was taken over by the Government of India to form Bharat Refineries Limited. On 1 August 1977, it was renamed Bharat Petroleum Corporation Limited. It was also the first refinery to process newly found indigenous crude
Bombay High The Mumbai High Field, formerly called the Bombay High Field, is an offshore oilfield 176 km off the west coast of Mumbai, in Gulf of Cambay region of India, in about 75 m of water. The oil operations are run by India's Oil and Natural G ...
. In 2003, the government attempted to privatize the company. However, following a petition by the
Centre for Public Interest Litigation The Centre for Public Interest Litigation (CPIL) is an Indian non-governmental organisation that conducts litigation on matters of public interest. The CPIL was established by late Justice V. M. Tarkunde, a former judge of the Supreme Court of Ind ...
, the Supreme Court restrained the Central government from privatizing Hindustan Petroleum and Bharat Petroleum without the approval of Parliament. As counsel for the CPIL,
Rajinder Sachar Rajindar Sachar (22 December 1923 – 20 April 2018) was an Indian lawyer and a former Chief Justice of the Delhi High Court. He was a member of United Nations Sub-Commission on the Promotion and Protection of Human Rights and also served as a ...
and
Prashant Bhushan Prashant or Prasant is a common male name in South Asia. It is derived from the word "shanth" which means patience, calm, quiet, or tranquil. People with the given name * Prashant Bose - Indian politician * Prashant Bhushan - Indian lawyer, ...
said that the only way to disinvest in the companies would be to repeal or amend the Acts by which they were nationalized in the 1970s. As a result, the government would need a majority in both houses to push through any privatization. Parliament enacted the
Repealing and Amending Act, 2016 The Repealing and Amending Act, 2016 is an Act of the Parliament of India that repealed 295 Acts, and also made minor amendments to the Sexual Harassment of Women at the Work Place (Prevention, Prohibition and Redressal) Act, 2013, and the Gover ...
in May 2016 which repealed the legislation that had nationalized the company. In 2017, Bharat Petroleum Corporation Limited (BPCL) received Maharatna status, putting it in the category of government-owned entities in India with the largest market capitalization and consistently high profits. In 2021, BPCL announced plans to invest US$4.05 billion in order to improve petrochemical capacity and refining efficiencies, over the next five years.


Operations

Bharat Petroleum operates the following refineries: * Mumbai Refinery : Located near
Mumbai Mumbai (, ; also known as Bombay — the official name until 1995) is the capital city of the Indian state of Maharashtra and the ''de facto'' financial centre of India. According to the United Nations, as of 2018, Mumbai is the second- ...
,
Maharashtra Maharashtra (; , abbr. MH or Maha) is a states and union territories of India, state in the western India, western peninsular region of India occupying a substantial portion of the Deccan Plateau. Maharashtra is the List of states and union te ...
. It has a capacity of 13 million metric tonnes per annum. *
Kochi Refinery Kochi Refinery Limited (KRL) is a crude oil refinery in the city of Kochi in Kerala, India. It is the largest public sector refinery in India with a production capacity of 15.5 million tonnes per year. Formerly known as Cochin Refineries Limit ...
: Located near
Kochi Kochi (), also known as Cochin ( ) ( the official name until 1996) is a major port city on the Malabar Coast of India bordering the Laccadive Sea, which is a part of the Arabian Sea. It is part of the district of Ernakulam in the state of K ...
,
Kerala Kerala ( ; ) is a state on the Malabar Coast of India. It was formed on 1 November 1956, following the passage of the States Reorganisation Act, by combining Malayalam-speaking regions of the erstwhile regions of Cochin, Malabar, South ...
. It has a capacity of 15.5  million metric tonnes per annum. * Bina Refinery : Located near Bina, Sagar district,
Madhya Pradesh Madhya Pradesh (, ; meaning 'central province') is a state in central India. Its capital is Bhopal, and the largest city is Indore, with Jabalpur, Ujjain, Gwalior, Sagar, and Rewa being the other major cities. Madhya Pradesh is the seco ...
. It has a capacity of 7.8  million metric tonnes per year. This refinery started as Bharat Oman Refineries Limited (BORL), a joint venture between Bharat Petroleum and OQ (formerly known as Oman Oil Company). Incorporated in 1994, BORL also has single point mooring (SPM) system, crude oil terminal (COT) and a long cross-country crude oil pipeline from Vadinar, Gujarat to Bina, Madhya Pradesh. As of April 2021, BORL is a subsidiary of BPCL. They have popular Loyalty Program like Petrocard, Smartfleet. , BPCL was also setting up a
Second-generation biofuels Second-generation biofuels, also known as advanced biofuels, are fuels that can be manufactured from various types of non-food biomass. Biomass in this context means plant materials and animal waste used especially as a source of fuel. First-gener ...
refinery at Baulsingha village in
Bargarh district Bargarh District is an administrative district of Odisha state in eastern India. The city of Bargarh is its district headquarters. The district was carved out of the erstwhile district of Sambalpur on 1 April 1993. History In ancient times ...
, Odisha of 100 kilo litre per day (KLPD) capacity. The plant would be using 2 Lakh tonnes of rice straw to generate fuel.


Subsidiaries

Indraprastha Gas Limited (IGL), a
joint venture A joint venture (JV) is a business entity created by two or more parties, generally characterized by shared ownership, shared returns and risks, and shared governance. Companies typically pursue joint ventures for one of four reasons: to acces ...
between
Gas Authority of India Limited Gail may refer to: People *Gail (given name), list of notable people with the given name Surname * Jean-Baptiste Gail (1755–1829), French Hellenist scholar * Max Gail (born 1943), American actor * Sophie Gail (1775–1819), French singer and ...
(GAIL), Bharat Petroleum Corporation Limited (BPCL) and the
Government of Delhi The Government of Delhi, officially the Government of the National Capital Territory of Delhi (GNCTD) is the governing body of the Union Territory of Delhi, whose urban area is the seat of the Government of India. It also governs the city or l ...
to operate the Delhi City Gas Distribution Project.
Petronet LNG Petronet LNG Ltd is an Indian oil and gas company formed by the government of India to import liquefied natural gas (LNG) and set up LNG terminals in the country. It is a joint venture company promoted by the Gas Authority of India Limited (G ...
, a joint venture company promoted by the
Gas Authority of India Limited Gail may refer to: People *Gail (given name), list of notable people with the given name Surname * Jean-Baptiste Gail (1755–1829), French Hellenist scholar * Max Gail (born 1943), American actor * Sophie Gail (1775–1819), French singer and ...
(GAIL),
Oil and Natural Gas Corporation The Oil and Natural Gas Corporation (ONGC) is a central public sector undertaking under the ownership of Ministry of Petroleum and Natural Gas, Government of India. It is headquartered in New Delhi. ONGC was founded on 14 August 1956 by the ...
Limited (ONGC),
Indian Oil Corporation Indian Oil Corporation Limited (IOCL; d/b/a IndianOil) is a central public sector undertaking under the ownership of the Ministry of Petroleum and Natural Gas, Government of India. It is headquartered in New Delhi. It is a public sector unde ...
Limited (IOC) and Bharat Petroleum Corporation Limited (BPCL) to import LNG and set up LNG terminals in the country. Bharat Renewable Energy Limited, a joint venture company promoted by BPCL with Nandan Cleantech Limited (Nandan Biomatrix Limited), Hyderabad and Shapoorji Pallonji Group, through their affiliate, S.P. Agri Management Services Pvt.Ltd. specializes in offering Bio diesel plants, ethanol, bio-diesel plants, Karanj (Millettia pinnata),
Jatropha ''Jatropha'' is a genus of flowering plants in the spurge family, Euphorbiaceae. The name is derived from the Greek words ἰατρός (''iatros''), meaning "physician", and τροφή (''trophe''), meaning "nutrition", hence the common name ...
and Pongamia (Pongamia Pinnata) plantation services, renewable generation services etc. In 2013 Shapoorji Pallonji Group exited the joint venture.


Ownership

Recently cabinet has cleared the plan to sell 53.3% of its stake in bharat petroleum corporation (BPCL) with the rest owned by Foreign PortInstitute estors (13.7%), Domestic Institute Investors (12%),
Insurance companies Insurance is a means of protection from financial loss in which, in exchange for a fee, a party agrees to compensate another party in the event of a certain loss, damage, or injury. It is a form of risk management, primarily used to hedge ...
(8.24%) and the balance held by individual share holders.


Disinvestment

On 21 November 2019, the
Government of India The Government of India (ISO: ; often abbreviated as GoI), known as the Union Government or Central Government but often simply as the Centre, is the national government of the Republic of India, a federal democracy located in South Asia, c ...
approved the privatization of Bharat Petroleum Corporation Limited (BPCL). The government invited bids for the sale of its 52.98% stake in the company on 7 March 2020. The Government decided to consolidate the businesses of BPCL before privatization starting with the Numaligarh Refinery Ltd. (NRL). The Government decided to keep Numaligarh Refinery Ltd. (NRL) in the public sector, honouring the Assam Peace Accord. On Mar 2021, Bharat Petroleum Corporation Ltd (BPCL) sold its entire 61.5% stake in Numaligarh Refinery in Assam to a consortium of Oil India Ltd. and Engineers India Ltd. and
Government of Assam The Government of Assam is the subnational government of Assam, a state of India. It consists of the Governor appointed by the President of India as the head of the state, currently Jagdish Mukhi. The head of government is the Chief Minister, ...
for ₹9,876 crore. BPCL also acquired a 36.62% stake in Bharat Oman Refineries (BORL) or Bina refinery situated at Bina in Madhya Pradesh, India from OQ (formerly known as Oman Oil Company), for ₹2,400 crore. BPCL has been holding 63.4 per cent and OQ 36.6 per cent equity in the company. The Government of Madhya Pradesh has a minor stake in the company through compulsorily convertible warrants. With the acquisition of OQ's entire stake in BORL, BPCL will establish control over BORL. The Indian Government attempted to sell BPCL during fiscal year 2021–2022. However, the sale of BPCL has been pushed to fiscal year 2022–2023, and it has been reported that the Government is building a new strategy for the sale of the company. In addition to this, it has also been reported that rising oil prices, along with increasing development and use of green energy, is leading to delays in the privatisation process. Later govt of India cancel privatisation of BPCL


See also

*
List of companies of India India is a country in South Asia. It is the seventh-largest country by area, the second-most populous country (with over 1.2 billion people), and the most populous democracy in the world. In 2019, the Indian economy was the world's fifth ...
*
List of largest companies by revenue This list comprises the world's largest companies by consolidated revenue, according to the ''Fortune'' Global 500 2022 rankings. American retail corporation Walmart has been the world's largest company by revenue since 2014. The list is limite ...
*
List of corporations by market capitalization The following is a list of publicly traded companies having the greatest market capitalization. In media they are described as being the most valuable companies, a reference to their market value. Market capitalization is calculated from the shar ...
*
Make in India Make in India is an initiative by the Government of India to create and encourage companies to develop, manufacture and assemble products made in India and incentivize dedicated investments into manufacturing. The policy approach was to creat ...
*
Forbes Global 2000 The ''Forbes'' Global 2000 is an annual ranking of the top 2000 public companies in the world, published by ''Forbes'' magazine. "The Global 2000" annual ranking is assembled by ''Forbes'' using a weighted assessment of four metrics: sales, profi ...
*
Fortune India 500 The ''Fortune India'' 500 is a ranking of the top 500 corporations in India compiled on the basis of latest sales and gross revenue figures. The list is published annually by ''Fortune'' magazine. ''Fortune India'' is ''Fortune'' sixth internatio ...
*
Rajiv Gandhi Institute of Petroleum Technology Rajiv Gandhi Institute of Petroleum Technology (RGIPT), in Jais, Amethi (formerly in Raebareli), Uttar Pradesh, India, is a training and education institute focusing on Science, technology, engineering, and mathematics, STEM and petroleum indus ...


References


External links

*
Bharat gas Booking

Bharat Gas
* Business data for Bharat Petroleum
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