BPRL wants Brazil asset valuation report

Vol 19, PW 18 (19 May 16) News in Brief

Brazil is in a mess and the state-oil company Petrobras in meltdown over a $6.2bn bribery scandal.

Which begs the question why is Bharat Petro Resources choosing now to carry out a valuation of its six assets in the country? On May 4, BPCL's upstream subsidiary tendered for an Indian or foreign-based consultant to value its 25% stake in the Anadarko-operated BM-C-30 concession, 40% stake in three Petrobras-operated blocks in the BM-SEAL-11 license area and its 20% stake in two Petrobras-operated blocks POT-16-663 and POT-16-760 at the BM-POT-16 license area. Included in the Scope of Work is an assessment of, "past and recent M&A transactions to infer the fair market value" of discoveries and equity held by IBV Brasil, BPRL's 50-50 joint venture with Videocon Petroleum.

Anyone interested can submit bids by the May 23 deadline, extended from May 16, on payment of Rs100,000 or $1515 deposit. Whoever wins must submit a final report within 35 days of award.