Both companies have reportedly also expanded their tie-up to feed the country’s increasing demand for fuel and renewable energy. Reuters claims that BP wishes to sell fuels in India in a tie-up with Reliance, which operates the largest refining complex in the world.
Bob Dudley, the Chairman of BP, reportedly spoke to Reuters on the sidelines of an event, claiming: “We will not do it (setting up fuel stations) alone. It will be in tie-up with Reliance. Maybe we will expand this to jet fuel also.”
BP reportedly holds a licence to sell jet fuel and construct 3500 fuel stations in India. Reuters claims that the country’s pricing formula provides increased profits to retailers with refining plants or domestic supply sources.
Mukesh Ambani, the billionaire who chairs Reliance, reportedly noted that the partnership would also look into trading opportunities, which include a number of products, such as oil, gas, fuels, power, carbon and LNG.
Reuters reports that, after eight years, both companies have reached an agreement to invest in the east coast D6 block to increase gas output between 2020 and 2022 by 30 – 35 million m3/d.
Dudley said: “This is an important step forward for BP in India. Working closely together, Reliance and BP are now able to develop these major deep-water gas resources offshore India efficiently and economically.”
Reuters reports that the gas joint venture (JV) is marketing a portion of the LNG sourced from BP’s portfolio. When asked if BP is planning a long-term LNG supply agreement with the Indian JV, Dudley reportedly said “I think that's what we are going to revive and reinvigorate”, adding that both companies would not limit the partnership’s expansion, covering all types of fuel marketing, retail distribution, and a combination of renewables and gas.
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