BP signs up for Bathinda

BP, HPCL also agreed to a partnership in greenfield refineries and terminal project.

BP Plc and Hindustan Petroleum Corporation today signed a letter of intent for establishing a new refining and marketing joint venture with 50:50 participation. This will be for building a minimum 9-million"�tonne capacity refinery at Bathinda in Punjab.

Through the joint venture, BP will be able to access HPCL's existing marketing infrastructure though marketing will be under the HPCL brand name. For HPCL, one of the benefits of the alliance will be assistance in crude oil selection. The tie-up will also help HPCL supply crude to its other refineries.

The letter of intent was signed by HPCL Chairman and Managing Director MB Lal and BP Chief Executive of Refining and Marketing John Manzoni.

The two companies also agreed to a broader strategic partnership in greenfield refineries and a terminal project on India's east coast.

There is also an agreement on providing opportunities to HPCL to acquire refining and marketing assets that the BP group may identify from its overseas portfolio. When asked specifically on this aspect, the BP group's Chief Executive John Browne said, 'At the moment, it (partnership) is confined to India. We will look at other areas later.'

Lal told reporters that BP would bring to the Bathinda project latest technologies and international standards and provide HPCL an opportunity to globalise. 'We are not looking at just Bathinda,' he said, adding that the joint venture agreement would be signed soon.

BP and Oil and Natural Gas Corporation would also work together. Briefing reporters, Petroleum Minister Mani Shanker Aiyar said ONGC could farm out energy opportunities in India to BP on a nomination basis.

A BP delegation also held discussions with Indian Oil Corporation and Oil India on exploration, refining and marketing.