Bharat Petroleum Corporation Limited (BPCL) has taken a significant step toward full ownership of its Brazil-based oil and gas joint venture. On Wednesday, the company announced that 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.
Acquisition Under Insolvency Process
The acquisition is being carried out under the Corporate Insolvency Resolution Process of VOVL Ltd, following an earlier order by the National Company Law Tribunal (NCLT). BPCL confirmed that all approvals required from the Government of India for the transaction have already been received. The company stated in a stock exchange filing: "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."
Stake Details and Post-Acquisition Structure
Before signing the definitive agreements, BPRL Ventures BV held 65.40 per cent of IBV Brazil Petroleo Limitada. Upon completion of the acquisition, IBV Brazil Petroleo Limitada will become a wholly owned subsidiary of BPRL Ventures BV. The transaction, however, remains subject to the necessary registration by the appropriate authorities in Brazil.
Strategic Importance for Energy Security
IBV Brazil Petroleo Limitada holds participating interests in oil and gas concessions in Brazil, including the BM-Seal-11 concession, which is currently progressing with development activities. According to the filing, "the aforementioned transaction will support the energy security of the nation." The company said it will disclose further details of the acquisition after the required registrations for the transaction are completed.
Background and Approval Process
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. BPCL emphasized that all necessary Indian government approvals have been secured, and the final step is registration with Brazilian authorities.
