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Jul 19, 2017 06:40 PM IST | Source: CNBC-TV18

Oil Ministry invites Reliance Industries, BP to invest in fuel retail in India

India is one fastest growing market for petroleum and oil, and the ‘tested partnership’ of Reliance-BP will benefit the customers.

Oil Ministry invites Reliance Industries, BP to invest in fuel retail in India

Reliance Industries (RIL) and BP have been invited to invest in fuel retail in India, Oil Minister Dharmendra Pradhan said today.

Pradhan's tweet comes ahead of a press conference that would be held by RIL and BP at 5.30 pm where the two companies are about to make a joint announcement.

Reliance already operates about 1,500 fuel retail outlets in the country, a small number compared to the nearly 56,000 owned by Indian Oil, BPCL and HPCL. It has, however, indicated in the past it would want to ramp up this number following the government's decision to deregulate diesel prices.


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The deal could be a game-changer for Reliance, BP and Indian customers together, oil expert Narendra Taneja said. BP, which is looking at new markets, will bring in new technologies which the current state-run oil marketing companies lack.

India is one fastest growing market for petroleum and oil, and the ‘tested partnership’ of Reliance-BP will benefit the customers.

SP Tulsian of sptulsian.com and Taneja both believe that the BP-Reliance partnership will go beyond fuel retail.

The partnership is likely to extend to natural gas, which the government too has been pushing for. Taneja said that LNG and CNG outlets are likely to be a part of the game plan for the companies.

“There are opportunities worth USD 30-40 billion for the companies,” Taneja said. The gas plans could be put in place in next one year.

This is the time for Reliance to expand refining and retail outlet capacities, which can be done through this partnership, Tulsian said. The investment magnitude has to be USD 12-15 billion here.

The partnership will also end monopoly of state-run companies in the fuel retailing.

RIL and BP already have investments in the KG-D6 basin, which they plan to start production in 2021-2022. BP holds 30 percent interest in the block that Reliance operates.

BP received approval to set up petrol pump in India last year. The company had cited investment of nearly USD 500 million in oil and gas

exploration and production for the licence.

Disclaimer: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.
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