13th Oct 2005 13:58
BP PLC13 October 2005 October 13, 2005 BP AND HPCL SIGN LETTER OF INTENT TO FORM A REFINING AND MARKETING JOINT VENTURE IN INDIA BP p.l.c. and Hindustan Petroleum Corporation Limited (HPCL) announced todaythat they have signed a letter of intent to form a 50/50 strategic joint venturecovering the refining and marketing sector in India. One of the joint venture's first major projects will be the construction of a $3billion refinery, with an annual capacity of at least 9 million tonnes (180,000barrels a day), at Bhatinda, in Punjab, India. At the same time, the partnerswill begin to develop a joint marketing activity, including the establishment ofa retail service station network, in preparation for the refinery coming onstream in 2009. In addition, the joint venture will provide assistance in crude selection andsupply for other refineries of HPCL. This strategic partnership would also provide opportunities for HPCL to acquire/participate in refining & marketing assets that the BP group may identify fromits overseas portfolio. The agreement was signed by Mr John Manzoni, BP's chief executive of refiningand marketing, and Mr Mahesh Behari Lal, Chairman of HPCL, in the presence of MrMani Shankar Aiyar, Minister of Petroleum and Natural Gas, and Lord Browne,group chief executive of BP, at a ceremony in Delhi. "India is one of the fastest growing energy markets in the world and we havebeen evaluating a range of potential areas where BP might become involved," saidLord Browne. "This strategic partnership with HPCL marks a major step forwardfor us and I'm delighted to be in India for the actual signing." "The strategic partnership of HPCL and BP would provide a platform foraddressing India's energy needs. The companies would work together to achieveenergy security for India through co-operation in petroleum businessopportunities both in India and overseas," said M B Lal. "It would also supportHPCL's broader visions for the future." The two companies will now establish a joint working group to progress thedevelopment of the joint venture and also examine a range of otheropportunities, including some outside India. Notes to Editors: • Hindustan Petroleum Corporation Limited (HPCL) is the second largest integrated refining and marketing company in India with a turnover of Rs 646.89 billlion ($14.7 billion). It has two fully owned coastal refineries at Mumbai and Vishakhapatnam and one joint venture refinery at Mangalore. Between them, these refineries supply 20 per cent of India's product requirements. • BP's largest business in India is Castrol India Ltd and the Castrol brand holds a leading position in the retail automotive segment. BP also has a JV with the Tata Group - Tata BP Solar - to manufacture and sell photovoltaic cells and also carries out some oil and chemical trading activities in India. - ENDS - This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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