New Delhi, Aug 06 : Reliance Industries and UK’s BP have agreed to form a new joint venture to set up a retail service station network and supply commercial aviation turbine fuel to airlines in India.
According to a release, the venture will build on Reliance’s existing Indian fuel retailing network, which currently has 1,400 petrol pumps across India, and its aviation fuel business to cater to India’s demand for energy and mobility.
The venture aims to set up 5,500 petrol pumps over the next five 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 statement said.
Reliance will hold a 51 percent stake in the new joint venture, while BP will have the remaining 49 percent. This joint venture would assume ownership of Reliance’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 completed in the first half of 2020,” it added.
Mukesh Ambani, Chairman and Managing Director of Reliance Industries Limited, and Bob Dudley, Group Chief Executive of BP, signed heads of agreement for the venture in Mumbai on August 6.
Mukesh Ambani said: “We are delighted to expand our partnership with BP, one of the global leaders in the fuel-retailing sector. This partnership is a testimony to the strong ties between BP and Reliance. Our robust partnership in developing gas resources in India has now expanded to fuel retailing and aviation fuels. This transformative partnership will deepen our engagement with the consumers in further enhancing the world-class services across the country.”
Bob Dudley,Group Chief Executive of BP said: “India is set to be the world’s largest growth market for energy by the mid-2020s. BP is already a large investor here and we see further attractive, strategic opportunities to support this growth. We are working closely with Reliance to develop India’s gas resources, helping meet the country’s demand for that key fuel. Together we will work to provide consumers across India the high-quality fuels, convenience retail and services they need, continuing to drive modernisation and mobility solutions across the country.”
