| Code | DS/UK/41 |
| Corporate Name | The Burmah Oil Co Ltd |
| Dates | 1886 - 2000 |
| OtherFormsOfName | Burmah-Castrol |
| Activity | Burmah was founded in Scotland in 1886. It was a major shareholder in British Petroleum (BP) and acquired Castrol in 1966. The company found itself in severe financial difficulties in late 1974 after massive losses in its tanker division. Initial support arrangements were announced on 31 December 1974 but were revised in early 1975 to include the sale of BP and Shell shares to provide a much-needed cash injection. The Bank of England purchased Burmah's holding of BP shares on 23 January 1975, with the Bank undertaking not to exercise its voting rights so that the Government did not exercise a greater proportionate voting power over BP than other stockholders. Under revised support arrangements, agreed in late 1976, the Bank guaranteed a loan for US$100 million being provided by a group of banks and made available a standby facility of £85 million (up to 30 June 1977 and continuing thereafter at £60 million up to 30 June 1982). This standby credit facility actually ceased in 1980. The following year, Burmah began a claim for the restitution of 78 million British Petroleum ordinary shares purchased by the Bank from the company in January 1975. The case was heard by the High Court in June 1981 and judgement was given in the Bank's favour on 3 July 1981.
Burmah-Castrol was acquired by BP Amoco in 2000. |
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