Riyadh – Mubasher: Russia’s Rosneft and the Saudi Arabian Oil Company (Saudi Aramco) are unlikely to bid in the privatisation of Indian refiner Bharat Petroleum Corp (BPCL) as tumbling oil prices and slow demand curb their investment plans, Reuters reported citing sources familiar with the matter,

Rosneft had expressed an interest in purchasing the federal government's 53.29% stake in BPCL, while India's trade minister has said that Saudi oil giant Aramco was enthusiastic about the stake sale.  

However, a Rosneft source stated it will not buy BPCL, while another said the Russian oil major would only be interested in BPCL’s marketing business, which consists of fuel depots and more than 16,800 fuel stations.

“For this, India has to sell BPCL in parts,” the source said.

India’s government had aimed to raise $8 billion to $10 billion through the sale of its stake in BPCL.

“This is not the time to invest in refining ... demand would be there for oil to chemicals and not conventional products,” one of the sources familiar with Aramco’s thinking said.

However, a second source said that after initially showing interest Aramco had not submitted a formal expression of interest (EoI), even though the process was extended by two months to 30 September. 

A third source said that Aramco has halted most of its India investment plans because of the oil price and is unlikely to bid for BPCL.

“India will not get the deserved price for the BPCL stake sale in the current environment,” another source said.