Reliance and BP agree to form new fuel joint venture

BP and Reliance Industries (RIL) have signed a definitive agreement regarding the formation of their new Indian fuels and mobility joint venture (JV).

The latest signing follows the initial heads of agreement signed by the two companies in August.

Expected to be formed in the first half of next year, the new JV will be 51% owned by RIL and 49% by BP.

Reliance Industries chairman and managing director Mukesh Ambani said: “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.”

The JV will include a fuels retail service station network and an aviation fuel marketing business throughout India.

It aims to expand RIL’s existing fuel retailing network of more than 1,400 retail sites and 30 aviation fuel stations across the country to up to 5,500 sites and 45 aviation fuel stations over the next five years.

This network will be operated under the Jio-BP brand.

According to BP, the JV brings together RIL’s access and connection to consumers through its Jio digital platform and BP’s expertise in fuel retailing market worldwide. It seeks to provide quality fuels and services to Indian customers.

BP chief executive Bob Dudley 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.”

The proposed entity is expected to assume ownership of RIL’s existing Indian fuel retail network and access to the company’s aviation fuel business.

The JV is subject to the approval of regulatory bodies and other customary closing conditions.