BRPL plans to raise $200 million through comfort letter from Standard Chartered Bank and DBS Bank

According to reports, Bharat Petro Resources Limited (BPRL) plans to raise about $200 million through a comfort letter from Standard Chartered Bank and DBS Bank to fund the acquisition of a 3 per cent share in Abu Dhabi’s offshore concession Lower Zakum. A comfort letter is a soft guarantee which states that the payment obligation will be met. ONGC Videsh Limited (OVL) and Indian Oil Corporation Limited (IOCL) may meet their payment obligations through internal accruals. On February 11, 2018, a consortium comprising OVL, IOCL and BPRL had acquired a 10 per cent stake in the Abu Dhabi National Oil Company Group-owned Lower Zakum concession. While OVL will hold a 4 per cent stake, BPRL and IOCL will hold a 3 per cent stake each.