Oil India Limited (OIL) on Tuesday said its acquisition of shares of Numaligarh Refinery Ltd (NRL) in Assam will be a synergy for mutual growth, ensure energy security of the nation, besides partially mitigating the effect of volatility of crude price cycle.
Bharat Petroleum Corporation Ltd on March 25 sold its entire 61.5 per cent stake in NRL to a consortium of OIL and Engineers India and the Assam government for Rs 9,876 crore. OIL bought a 54.16 per cent stake to raise its shareholding in the refinery to 80.16 per cent.
Addressing a press conference here, OIL CMD and NRL Chairman Sushil Chandra Mishra said that for OIL, the majority acquisition of shares of NRL is not only a strategic business decision but one of the defining moments of its journey as an exploration and production (E&P) company looking for vertical integration in the oil and gas value chain.
The acquisition is likely to partially mitigate the effect of volatility of crude price cycle due to diversification of cash flows, reduce earnings volatility and enhance shareholder value, said Mishra.