BP and Reliance Industries Ltd (RIL) has signed a definitive agreement relating to the formation of their new Indian fuels and mobility joint venture branded as Jio-BP.

The partners intend to set up a new joint venture company, held 51 per cent by RIL and 49 per cent by BP, that will assume ownership of RIL’s existing Indian fuel retail network and access its aviation fuel business.

Reliance will receive ₹7,000 crore from BP for acquiring a 49 per cent stake in the petro-retail JV.

The venture expects to expand from RIL’s current fuel retailing network of over 1,400 retail sites and 30 aviation fuel stations across India to up to 5,500 retail sites and 45 aviation fuel stations over the next five years to become the most preferred provider of automotive and aviation fuels.

The retail network will operate under the Jio-BP brand, signalling a new paradigm shift in fuels marketing and mobility solutions. It brings together Reliance’s extensive access and connection to consumers through its Jio digital platform and BP’s deep experience in fuel retailing around the world. The joint venture will seek to offer Indian consumers high-quality differentiated fuels, convenience and services.

Castrol lubricants will also be available across the venture’s network.

The venture is expected to be formed during the first half of 2020, subject to regulatory and other customary approvals.

Mukesh Ambani, CMD, Reliance Industries, said: “BP and Reliance are combining their knowledge, expertise and experience to provide Indian consumers world class products and services.”

Bob Dudley, Group Chief Executive, BP, said: “We aim to meet the country’s growing demand for mobility solutions, high-quality fuels and services through this new venture.”

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