The new joint venture will include RIL’s aviation fuels business and retail service station networks across India.
Reliance Industries Ltd., a multinational conglomerate company based in India, has recently announced that it would be forming a joint venture (JV) with UK’s multinational oil and gas company, BP plc which would include its retail service station network and conduct aviation fuels business across India. The new venture will bring in an investment of Rs 7,000 Cr from BP which would provide it with 49 percent stake in the joint venture, cite sources.
Speaking on the announcement, Mukesh Ambani, Chairman and Managing Director, Reliance Industries Limited, said that the company is delighted to expand its partnership with BP and is looking forward to expanding into the fuel retailing business.
He said, BP will pay RIL Rs 7,000 Cr to get a 49 percent stake in the company, which would help the partnership further its engagement with customers, thus providing a chain of world class services across the nation.
According to reliable reports, RIL will maintain 51 percent stake in this new venture, allowing it to share its existing Indian fuel retail network with BP which is spread over 1,400 sites across India. The partnership will include operating RIL’s aviation fuel business across 30 airports throughout the nation and will aim on expanding its fuel retail stations up to 5,500 sites over the next five years.
As per RIL, the new venture will focus on offering Indian consumers with high-quality differentiated fuels and services at its network of sites by leveraging the firm’s extensive retail business experience, market-leading access and digital connection to consumers through its Jio digital platform.
Reportedly, RIL and BP first formed a partnership in 2011, when the British multinational took a 30 percent stake in multiple oil and gas blocks in India operated by RIL, including the producing KG D6 block. In addition to this, India Gas Solutions Pvt., a 50:50 joint venture to source and market gas in India, is also part of BP’s gas value chain alliance with RIL.