It will build on RIL’s current fuel retailing network of more than 1,400 sites across India, which they aim to grow to up to 5,500 sites over the next five years.
The joint venture – held 51% by RIL and 49% by BP – will also include RIL’s aviation fuels business, which currently operates at more than 30 airports in the South Asian country.
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 estimated to grow almost six-fold over the period.
Bob Dudley, BP Group Chief Executive said: “India is set to be the world’s largest growth market for energy by the mid-2020s. BP is already a large investor here and we see further attractive, strategic opportunities to support this growth. We are working closely with Reliance to develop India’s gas resources, helping meet the country’s demand for that key fuel.
“Together we will work to provide consumers across India the high quality fuels, convenience retail and services they need, continuing to drive modernisation and mobility solutions across the country.”
The final agreement is expected to be reached later this year, subject to regulatory approvals and the transaction completed in the first half of 2020.