Videocon, BPCL to buy Brazilian oil company

A consortium of oil refiner Bharat Petroleum Corp Limited (BPCL) and Videocon Industries has decided to buy Brazil’s EnCana Brasil Petroleo Limitada for about $165 million (about Rs 675 crore).

Videocon, a diversified group whose businesses range from power to home appliances, and Bharat PetroResources Ltd (a subsidiary of BPCL) are equal partners in the consortium that will buy EnCana Brasil Petroleo from Canadian natural gas producer EnCana Corp and 749793 Alberta Ltd, the companies said in separate statements to the Bombay Stock Exchange.

BPCL, which did not disclose financial details, said the deal was for interests in 10 deepwater offshore exploration blocks in four concessions in Brazil.

The sale, which will be effective retrospectively from January 1, 2007, is subject to regulatory approval, pre-emptive right associated with certain assets, and is expected to close in the first quarter of 2008.

Read more in The Business Standard article.

Bhoruka Power acquires SLS Power for Rs 80cr

Bhoruka Power Corporation (BPCL), part of the Bhoruka Group, has bought out Bangalore-based SLS Power Industries for Rs 80 crore. The acquisition, which includes debt, has been funded Rs 50 crore by two banks. The remaining Rs 30 crore came from BPCL's internal accruals.

SLS Power Industries has two hydro power stations in the Cauvery and Tungabhadra basins, with a total capacity of 12MW in Karnataka. With this acquisition, BPCL's power production capacity has touched 100MW.

BPCL, which specialises in mini hydro power and wind energy projects, registered a Rs 67 crore turnover last fiscal. "The acquisition is part of our growth strategy to achieve Rs 200 crore in revenues by 2009," S N Agarwal, chairman, Bhoruka Group, said.

Read more in The Business Standard article.

Fenosa eyes 10% Petronet stake

Spanish power group Union Fenosa may pick up 10% equity in Petronet LNG Ltd (PLL). The deal may come through the foreign currency convertible bond (FCCB) route. PLL was planning to float a $100-million FCCB issue.

Petronet sources said a Union Fenosa team visited its Dahej LNG import terminal in Gujarat a few months back. The team may come for due diligence again, they added.However, with regard to FCCB route, PLL may have to take a fresh government approval for the issue since the previous approval has expired.

Union Fenosa is present in 12 countries with significant interests in the gas business.

PLL is a joint venture company promoted by Bharat Petroleum Corporation, GAIL India, Indian Oil Corporation and Oil & Natural Gas Corporation. These firms hold 50% in the venture (12.5% each), floated to build and operate the country’s first LNG terminal at Dahej.

With an authorised equity of Rs 1,200 crore, the company’s other shareholders include Gaz de France (10%) and Asian Development Bank (5.2%). The remaining 34.8% equity is held by the public.

Read more in The DNA Money article.