Future endeavors as outlined by BPCL

production

via

its

upstream

Bharat Petroleum Corp Ltd (BPCL) is

eyeing at buying excess stakes in oil
and gas assets that have already
boosted up investment returns. The
state-run refiner had previously
focused specifically on exploration
assets overseas, where it has invested
just over $1.5 billion. But the company
now also looks at fields that are already
producing. During March, it bought a
stake in Russian oilfields that are in
subsidiary Bharat Petro Resources Ltd.

D Rajkumar, MD Bharat Petro Resources Ltd said that is the reason they looked at
Russia which will ensure them of their balanced portfolio of assets from exploration,
development to producing. So with all these, they will soon be in a self-sustaining
place. The pressure on oil companies to derive rapid return on their investment has
risen owing to lower oil prices which have also hit the industry's capital spending
plans.
As of now BPCL share price is trading above 5%, settled at Rs. 604.45.

Acquisitions
Bharat Petroleum was the first Indian state refiner to undertake into the upstream
oil business when it acquired minority stakes in Brazilian blocks in the year 2007.
During 2008, the company invested in a gas block in Mozambique but the
production has now been postponed to 2020-21 after liquefied natural gas (LNG)
prices dipped.

 The purchase of the Russian assets gives Bharat Petroleum a possibility for
instantaneous revenues and bridges the gap till 2021-22 when Mozambique gas
production
commences.
S Varadarajan, the chairman of the company, is of the view that it would also
continue to eye for exploration opportunities. He further added that there is a
strategy to look at various markets and projects which are at different phases (of
exploration and production) and that is why they undertook the Russian
acquisition.
It has planned to take Bina Refinery, its joint venture with Oman Oil Company,
public via an initial public offering some time next financial year.
Next in line, the company aims to start full operations of its expanded Kochi refinery
project
in
the
fourth
quarter
of
the
current
fiscal
year.
The outlined expansion at its Kochi refinery will be executed and operational by the
March quarter of the present financial year. The company is extending its refining
capacity at the Kochi Refinery from the existing 9.5 MMTPA to 15.5 MMTPA for an
investment
of
Rs16,000
crore.
BPCL aims to invest Rs 1 trillion as capital expenditure over the coming five years.
Of the plan capex, around Rs 55,000 crore will be spent for the expansion of
refining capacity and around Rs 20,000 crore in upstream projects, which will
include the Mozambique block over the same period.

Stock Fundamentals
The 52 week high of BPCL share price is observed at Rs. 617.70 on 8th August 16
while the 52 week low is seen at Rs. 365.58 on 23rd Feb 16.
The Average Daily Movement of the stock is 14.90 and its average volume for last 20
days is 3473735.

The market cap of the company amounts to Rs. 86596.57 (Cr) and has a book value
of Rs. 211.11.
For further details on the stock kindly refer to BPCL share price forecast.

Disclaimer
The investment advice or guidance provided by way of recommendations, reports or other ways are solely the personal views of the
research team. Users are advised to use the data for the purpose of information and rely on their own judgment while making
investment decision.
Dynamic Equities Pvt. Ltd - SEBI Investment Advisory Reg. No.: INA300002022

Disclosure
Dynamic Equities Pvt. Ltd. is a member of NSE, BSE, MCX SX and a DP with NSDL & CDSL. It is also engaged in Investment Advisory
Services and Portfolio Management Services. Dynamic Commodities Pvt. Ltd., associate company, is a member of MCX & NCDEX. We
declare that our activities were neither suspended nor we have defaulted with any stock exchange authority with whom we are
registered. SEBI, Exchanges and Depositories have conducted the routine inspection and based on their observations have issued
advise letters or levied minor penalty on for certain operational deviations.
Answers to the Best of our knowledge and belief of Dynamic/ its Associates/ Research Analyst: DYNAMIC/its Associates/ Research
Analyst/ his Relative:

Do not have any financial interest / any actual/beneficial ownership in the subject company.
Do not have any other material conflict of interest at the time of publication of the research report
Have not received any compensation from the subject company in the past twelve months
Have not managed or co-managed public offering of securities for the subject company.
Have not received any compensation for brokerage services or any products / services or any compensation or other
benefits from the subject company, nor engaged in market making activity for the subject company
Have not served as an officer, director or employee of the subject company

Article Written by
Madhurima Chowdhury