Reliance Industries (RIL) and BP on Monday announced the signing of a definitive agreement relating to the formation of their new fuels and mobility joint venture in India.
Mukesh Ambani, chairman and managing director of Reliance Industries Limited, and Bob Dudley, group chief executive of BP, signed the agreement in Mumbai on Monday.
The new venture, named Jio-BP, an extension of the existing partnership between RIL and BP, will include an India-wide fuel retail service station network and aviation fuel marketing business.
The new joint venture company, held 51 per cent by RIL and 49 per cent by BP, will assume ownership of RIL’s existing Indian fuel retail network and access its aviation fuel business. The partners had signed the initial heads of agreement for the fuel retail venture in August this year.
Reliance will receive Rs7,000 crore from BP against the 49 per cent stake in the fuel retail JV.
The venture is expected to be formed during the first half of 2020, subject to regulatory and other customary approvals.
Building on RIL’s existing businesses, the partners expect the venture to create a world class fuel partnership and expand from RIL’s current fuel retailing network of over 1,400 retail sites and 30 aviation fuel stations across India to 5,500 retail sites and 45 aviation fuel stations over the next five years.
The retail network will operate under the Jio-BP brand, signaling a new paradigm shift in fuels marketing and mobility solutions. It brings together Reliance’s extensive access and connection to consumers through its Jio digital platform and BP’s deep experience in fuel retailing around the world. The joint venture will seek to offer Indian consumers high-quality differentiated fuels, convenience and services.
“I am delighted that BP and Reliance are further building on their strong partnership. BP and Reliance are combining their knowledge, expertise and experience to provide Indian consumers world class products and services. We believe that together we will bring solutions that will benefit the fast-growing Indian market,” Mukesh Ambani said.
“India is one of the world’s most important energy markets – its transport and aviation sectors are growing and evolving rapidly. We aim to meet the country’s growing demand for mobility solutions, high-quality fuels and services through this new venture,” Bob Dudley said.
With its many investments in India and employing around 7,500 people in the natural gas, lubricants and petrochemicals businesses, BP is one of the largest international energy companies in India. In addition to its gas value chain alliance with Reliance Industries Ltd, BP’s activities include Castrol lubricants; the licensing of competitive petrochemical technologies; oil and gas trading; clean energy projects through its investment in Lightsource BP; IT and procurement back office activities; staffing and training for BP’s global marine fleet; and the recruitment of skilled Indian employees for its global businesses.
Reliance Industries Limited (RIL) is India’s largest private sector company. RIL’s activities span hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, retail and digital services.