British oil giant BP Plc and Reliance Industries Ltd are making proposals to jointly establish around 2,000 petrol pumps in the Indian zone within a period of next three years. The sources near to the development made this declaration. The exact plan of the project is being worked out and would be decided in the coming months.
BP gets the nod to set up fuel outlets
As per reports, Reliance Industries Ltd (RIL) already runs 1,343 petrol pumps independently. On the other hand, BP Plc got an authorization to establish 3,500 fuel retail outlets in the country during October 2016. Indian zone is one of the few top global zones where the demand for fuel is going up on a continuous basis. The country has attracted attention from foreign fuel retailers eyeing to gain a foothold in a nation where fuel retailing is ruled by state-run firms.
BP Plc is Reliance Industries Ltd’s partner in its exploration and production ventures in the country. During February 2011, London-based BP got hold of a 30 per cent equity stake in 21 oil and gas production-sharing bonds functioned by RIL for $7.2 billion. The two firms had also joined hands in India Gas Solutions Pvt. Ltd, an equal joint project for sourcing and commercializing of gas in the nation.
After the company made declaration of its second-quarter profits on 17 October, V. Srikanth, joint chief financial officer of Reliance Industries Ltd, stated that they had a memorandum of association inked with BP Plc but there was no definitive contract. But, they will carry on expanding their retail footprint as well as the marketing. It is in proportion to what they had proposed to do.
RIL has licenses to set up 5,000 petrol pumps in India
During his visit to India in the past week, Bob Dudley, BP’s group chief executive, stated that their affiliation with RIL is great. To get authorization to retail auto fuel in the country, a company must make an investment of around ₹2,000 crore in exploration or fabrication, refining, gas or product pipeline, or terminals. RIL has licences to open 5,000 petrol pumps in the country and proposes to double its market share in the fuel retail section. Presently, it has a 6 per cent share in the country’s fuel retail zone.
Reliance, BP all set to establish 2,000 petrol pumps in India
British oil giant BP Plc and Reliance Industries Ltd are making proposals to jointly establish around 2,000 petrol pumps in the Indian zone within a period of next three years. The sources near to the development made this declaration. The exact plan of the project is being worked out and would be decided in the coming months.
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