Bharat Petroleum Corporation Limited has officially incorporated its wholly owned subsidiary in Singapore, marking a significant milestone in the company's international expansion strategy. The company filed an intimation with stock exchanges on 26th February 2026, announcing the formal establishment of Bharat Petroleum Global Energy Services (Singapore) Pte. Ltd.

Incorporation Details and Capital Structure

The subsidiary was officially incorporated on 26th February 2026 in Singapore with a substantial financial foundation. The company has been established with specific capital allocation to support its oil and natural gas trading operations.

Business Objectives and Trading Operations

The newly incorporated subsidiary will focus on establishing a comprehensive trading desk for multiple energy commodities. The business scope encompasses trading in crude oil, natural gas, petroleum, and other petrochemical products, along with associated activities that support these core operations. This strategic move positions Bharat Petroleum Corporation Limited to actively participate in international oil and natural gas markets.

Strategic Market Positioning

By incorporating operations in Singapore, Bharat Petroleum Corporation Limited positions itself strategically in one of the world's leading financial and trading centers. This move enhances the company's ability to participate actively in international energy markets and establishes a strong foundation for global oil and natural gas trading operations.

Regulatory Compliance

The incorporation was announced through proper regulatory channels, with the company filing the requisite intimation under Regulation 30 of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015. The filing was signed by V. Kala, Company Secretary, ensuring full compliance with disclosure requirements for the establishment of this wholly owned subsidiary.

Bharat Petroleum Corporation Limited has disclosed receiving a significant tax demand order from the Commissioner of Central Tax and Central Excise, Kochi, dated February 21, 2026. The order addresses long-pending adjudication matters spanning from September 2004 to May 2010, with substantial financial implications for the oil marketing company.

Order Details and Financial Impact

The Adjudicating Authority has confirmed a total demand of ₹1,816.65 crores against BPCL, breaking down into multiple components that reflect both the principal amount and accumulated interest over the years.

Background of the Dispute

The order addresses 19 Show Cause Notices that were pending adjudication by the central excise department, all pertaining to transaction value disputes under Central Excise law. The major portion of the confirmed demand relates to the pre-merger period of Kochi Refineries Limited from September 2004 to August 2006.

The Adjudicating Authority made several key determinations that formed the basis of the demand:

• BPCL and Kochi Refineries Limited were ruled to be related parties
• Refinery Gate Price cannot be used for excise valuation purposes
• Department's valuation under Rule 11 read with Rule 9 of Central Excise Valuation Rules, 2000 was deemed valid
• Post-merger valuation methodology was also questioned

Valuation Methodology Dispute

The core of the dispute centers around excise valuation rules and their application. For the pre-merger period, the Authority rejected the use of Refinery Gate Price, citing the related party relationship between BPCL and KRL. After the merger, while BPCL's Kochi Refinery applied Rule 7 of Central Excise Valuation Rules, 2000 using highest-quantity depot price, the department applied the highest value of the entire fortnight to all clearances under Rule 11 read with Rule 7.

Company's Response Strategy

BPCL has indicated its intention to challenge the order through the established appellate process. The company plans to analyze the order thoroughly and file an appeal before the Customs, Excise and Service Tax Appellate Tribunal (CESTAT). This approach suggests the company believes it has grounds to contest the Authority's findings and valuation methodology.

Regulatory Compliance

The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, demonstrating the company's commitment to keeping stakeholders informed about material developments that could impact its financial position.