The decision to divest the company was taken on September 30 last month.

The BPCL stake sale is expected to raise around Rs 60,000 crore. Besides Aramco, the companies which that are expected to take part in the BPCL stake sale are Rosneft, Kuwait Petroleum, ExxonMobil, Shell, Total and Adnoc.

The Department of Investment and Public Asset Management (DIPAM) is expected to hire an adviser by November. The valuation is also expected to be completed in the next 50 days.

The bidding process for the appointment of potential advisers is scheduled to open on November 4, 2019.

With regard to potential bidders, Vidyadhar Ginde, an analyst at ICICI Securities told the media, “Rosneft, which bought Essar Oil, and BP, which announced a 49 percent stake in oil marketing joint venture with RIL, is likely to bid. Kuwait Petroleum, Total, ExxonMobil, Shell and ADNOC may also bid for BPCL.”

This is not the first time the Indian government attempted to privatise BPCL. An earlier attempt was made in 2003; however, it was rejected by the Supreme Court.

Last week, local media reported that Aramco will announce its interest in BPCL during the Indian Prime Minister Narendra Modi’s visit to Saudi Arabia at the end of the month.

Recently, Aramco delayed the listing of its shares in the stock exchange, yet again. The IPO, which is expected to be the world’s biggest, is now expected to happen in December or January.

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The media reports said that they are still in the early stages of negotiation for the financing with a number of local conventional and Islamic banks. Kuwait Petroleum is planning to invest hundreds of billions of dollars to reach production capacity of 4.75 million barrels per day by 2040.

Last year, Kuwait Petroleum’s former Chief Executive Nizar al-Adsani said that the company is planning to spend approximately $114 billion in investment by 2023. After that, an additional investment of $394 billion is expected till 2040. 

The company is also reevaluating its plans to spend $500 billion in capital investment. It is reviewing investment in heavy oil which is expensive to produce, media reports said.  Kuwait Petroleum is hoping to produce 85,000 barrels a day of heavy oil by 2021 and is working on developing reservoirs for that reason. 

Kuwait is the fourth largest producer in OPEC. It produced 2.75 million barrels per day in January this year on the basis of compiled Bloomberg data. Kuwait’s oil minister Khaled Al Fadhel told state-run media agency that they will support extending OPEC oil cuts in the second half of 2019. 

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