16th Dec 2019 15:38
(Alliance News) - BP PLC said Monday it has signed a definitive agreement with Reliance Industries Ltd, relating to the formation of their new Indian fuels and mobility joint venture, which was initially announced in August.
Oil major BP said the new venture, which is expected to be formed during the first half of 2020, will include an India-wide fuels retail service station network and aviation fuel marketing business.
Building from Reliance Industries existing businesses, the new venture is expected to expand from a current fuel retailing network of over 1,400 retail sites and 30 aviation fuel stations across India to up 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, signalling a new paradigm shift in fuels marketing and mobility solutions," BP said.
BP said the partners intend to set up a new joint venture company, held 51% by Reliance Industries and 49% by BP, that will assume ownership of Reliance Industries existing Indian fuel retail network and access its aviation fuel business.
Bob Dudley, group chief executive of BP, 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."
"This major expansion of our business here reinforces our long-term commitment to India," Dudley said.
BP shares were up 1.7% in London at 470.55 pence each on Monday.
By Loreta Juodagalvyte; [email protected]
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