Reliance Jio and British Energy Major BP have signed an agreement to set up nationwide fuel retail outlets under the “Jio-BP” brand. The two notably signed a contract to set up as many as 5,500 petrol pumps in the country in next 5 years.
“BP and RIL signed a definitive agreement relating to the formation of their new Indian fuels and mobility joint venture. This follows the initial heads of agreement signed in August this year,” the companies said in a press statement.
As of now, RIL owns and control 1,400 petrol pumps in the country and some 30-odd aviation fuel stations at airports. Post the collaboration, the RIL-BP venture will have control over the same.
In the RIL-BP partnership, 51% of the venture will be owned by Reliance and the remainder by BP. The latter will have to pay an amount of Rs. 7,000 crore to acquire the 49% stake in RIL existing business.
For the unknown, both companies had set up another 50:50 joint venture, India Gas Solutions, to meet the gas dependency of Indians. BP received a licence to market jet fuel in India in January 2016.
Includes inputs from Livemint