BP pays $1bn for 49% of Reliance’s fuel retail business

British oil company BP paid $1 billion (Dh3.67bn) for a minority stake in the fuel retail business of India’s largest private sector company Reliance Industries.

BP will take a 49 per cent stake in the joint venture known as Reliance BP Mobility Limited while Reliance retains the controlling stake.

“Reliance is expanding on its strong and valued partnership with BP, to establish a pan-Indian presence in retail and aviation fuels,” Mukesh Ambani, chairman and managing director of Reliance Industries, said.

RBML intends to take the lead in mobility and low carbon solutions, “bringing cleaner and affordable options for Indian consumers, with digital and technology being our key enablers”, said Mr Ambani.

It will also work to grow its current network of more than 1,400 fuel retail sites to about 5,500 within the next five years.

This rapid growth will require a four-fold increase in staff employed in service stations to about 80,000, up from 20,000 currently.

The venture also intends to increase its presence at airports from the current 30 sites to 45.

“Reliance’s digital capabilities, technical expertise and reach complement our international fuels and service offers ... [this] announcement is another milestone in our common goal to serve the Indian consumer,” BP’s chief executive Bernard Looney, said.

“This new venture is a unique opportunity to build a leading, fast-growing business that can help meet India’s demands and create exciting new digital and low-carbon options for the future.”

India is expected to be the fastest-growing fuels market in the world over the next 20 years, with the number of passenger cars in the country projected to grow about six-fold during the period.

Reflecting the companies’ net zero ambitions, the venture aspires to provide Indian consumers with advanced fuels that have lower carbon emissions, electric vehicle charging and other low carbon solutions over time, Reliance and BP said.

It will leverage Reliance’s presence across 21 states and its access to millions of consumers through the Jio digital platform.

Meanwhile, BP will bring its global experience in high quality fuels, lubricants, retail and advanced low carbon mobility solutions.