Reliance-BP ink new fuel retail JV; to set up 5,500 petrol pump outlets in 5 years

Eight years after they collaborated to create hydrocarbons in India, Reliance Industries Ltd and British oil major BP Plc have met up again to open an across the nation system of fuel retailing outlets.

The outlets will be set up through another joint endeavor organization that will be claimed 51 per cent by RIL and the rest of BP, as indicated by a joint proclamation issued by the companies. The partnership will also market aviation turbine fuel to take into India's developing aviation industry.

Together, the companies intend to set up 5,500 fuel retail stations across the country, which may incorporate the 1,378 retail outlets RIL freely keeps running across India at present.

Mukesh Ambani, administrator and managing director of RIL and Bob Dudley, group Chief Executive of BP, consented to the heads of agreement for the joint venture in Mumbai on Tuesday. "Our strong association in developing gas resources in India has now extended to fuel retailing and aviation fuels.

BP got a permit to market jet fuel in India in January 2016. In October 2016, it got a permit to set up 3,500 fuel retail outlets in India. RIL holds a permit to open 5,000 fuel outlets and plans to double its growth in the fuel retail section from the present 7-8 per cent share.

BP is RIL's partner in its exploration and production venture in the country. In February 2011, London-based BP purchased a 30 per cent stake in 21 oil and gas production sharing contracts worked by RIL for US$7.2 billion. The two are also partners in India Gas Solutions Pvt. Ltd, an equal joint venture for sourcing and marketing of gas in the country.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.