Reliance Industries Ltd (RIL) and British multinational oil and gas company BP Plc have signed a definitive agreement relating to the formation of new Indian fuels and mobility joint venture.
This follows the initial heads of agreement signed in August. The venture is expected to be formed during the first half of 2020 after regulatory and other customary approvals.
"The new venture, further development of RIL and BP's longstanding partnership, will include an India-wide fuels retail service station network and aviation fuel marketing business," according to a joint statement.
"Building from RIL's existing businesses, the partners expect the venture to co-create a world-class fuels partnership to grow rapidly and help meet India's fast-growing demands for energy and mobility."
The venture expects to expand from RIL's 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 to become the provider of automotive and aviation fuels.
The retail network will operate under the Jio-BP brand, signalling 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. Castrol lubricants will also be available across the venture's network.
"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," said RIL's Chairman and Managing Director Mukesh Ambani.
Group Chief Executive of BP Bob Dudley said India is one of the world's most important energy markets with its transport and aviation sectors 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 partners intend to set up a new joint venture company, held 51 per cent by RIL and 49 per cent by BP, that will assume ownership of RIL's existing Indian fuel retail network and access its aviation fuel business.
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