bp paid RIL $1 bn for 49 pc stake in jt venture
Following initial agreements in 2019, bp and RIL teams have worked closely over the past few months in a challenging environment to complete the transaction as planned.
bp has paid RIL $1 billion for a 49 per cent stake in the joint venture, with RIL holding 51 per cent. Operating under the “Jio-bp” brand, the joint venture aims to become a leading player in India’s fuels and mobility markets.
It will leverage Reliance’s presence across 21 states and its millions of consumers through the Jio digital platform. bp will bring its extensive global experience in high quality differentiated fuels, lubricants, retail and advanced low carbon mobility solutions bp and RIL expect the venture to grow rapidly to help meet India’s fast-growing demands for energy and mobility.
RBML aims to expand from its current fuel retailing network of over 1,400 retail sites to up to 5,500 over the next five years. This rapid growth will require a four-fold increase in staff employed in service stations – growing from 20,000 to 80,000 in this period.
The joint venture also aims to increase its presence from 30 to 45 airports in the coming years. Commenting on the partnership Mukesh Ambani, Chairman and Managing Director of Reliance Industries Ltd said that Reliance is expanding on its strong and valued partnership with bp, to establish a pan-Indian presence in retail and aviation fuels.
“RBML will aim to be a leader in mobility and low carbon solutions, bringing cleaner and affordable options for Indian consumers with digital and technology being our key enablers,” Ambani added
Bernard Looney, bp chief executive officer, said: “India has been leading the way with innovations in digital technology, value engineering and new energy solutions. It is a country that will require more energy for its economic growth and, as it prospers, its needs for mobility and convenience will accelerate.”