BPCL agrees to buy Videocon Energy’s stake in BPRL Ventures JV

State-owned Bharat Petroleum Corporation Ltd (BPCL) on Wednesday said it has signed definitive agreements to acquire the entire stake held by Videocon Energy Brazil Ltd (VEBL) in IBV Brazil Petroleo Limitada.

This will help BPCL take full ownership of its Brazil-based oil and gas joint venture.

BPCL did not disclose the transaction value.


In a regulatory filing, BPCL said the acquisition will be carried out through its upstream arm and wholly owned subsidiary BPRL Ventures BV, following approvals from the Government of India and in line with the corporate insolvency resolution process of VOVL Ltd.

Before signing the definitive agreements, BPRL Ventures BV held a 65.40% stake in IBV Brazil Petroleo Limitada.

Upon completion of the transaction and the required registration with the relevant authorities in Brazil, IBV Brazil Petroleo Limitada will become a wholly owned subsidiary of BPRL Ventures BV.

The transaction follows an order by the National Company Law Tribunal (NCLT) approving the acquisition of VEBL's stake as part of the insolvency proceedings involving VOVL Ltd.

IBV Brazil Petroleo Limitada holds participating interests in several oil and gas concessions in Brazil, including the BM-SEAL-11 concession, where development activities are currently underway, BPCL said.

BPCL said the acquisition would strengthen India's energy security by enhancing its overseas upstream portfolio.

The company added that further details of the transaction will be disclosed after the necessary registrations in Brazil are completed.