Mumbai, August 7 - Neftegaz.RU.
BP and Reliance Industries Limited (RIL) announced that they have agreed to form a new joint venture that will include a retail service station network and aviation fuels business across India.
Mukesh Ambani, Chairman of Reliance Industries Limited, and Bob Dudley, CEO of BP
, signed heads of agreement for the venture in India on August 6.
is expected to be the fastest-growing fuels market in the world over the next 20 years, with the number of passenger cars in the country estimated to grow almost 6-fold over the period. RIL and BP's venture will incorporate and build on RIL's current fuel retailing network of over 1,400 sites across India, which the partners aim to grow rapidly to up to 5,500 sites over the next 5 years.
This joint venture will also include RIL's aviation fuels business, which currently operates at over 30 airports across India, providing participation in this rapidly-growing market.
The partners have agreed to set up a new joint venture company, held 51% by RIL and 49% by BP, that will assume ownership of RIL's existing Indian fuel retail network and access its aviation fuel business. It is anticipated that final agreements will be reached during 2019 and, subject to regulatory and other customary approvals, the transaction will be complete in the 1st half of 2020.
The new venture will seek to offer Indian consumers high-quality differentiated fuels and services at its network of sites, benefitting from RIL's extensive retail business experience and market-leading access and digital connection to consumers through its Jio digital platform.
After initial co-operation from 2008 in exploration offshore India, BP and RIL entered into their current partnership in 2011 when BP acquired a 30% interest in RIL's portfolio of exploration and production interests offshore India, including the major producing KG D6 gas-producing block off the east coast. More recently, since 2017 the partners have sanctioned 3 new gas developments in the KG D6 block.