Reliance Industries Limited (RIL) has entered into an agreement with British oil and gas company BP to expand its fuel retail business in India under the brand Jio-BP.

Under the agreement, the joint venture intends to operate 5,500 petrol pumps and 45 aviation fuel stations at airports by 2024. Presently, RIL has more than 1,400 operating petrol pumps and 30-odd aviation fuel stations.

RIL to own the new joint venture company

The companies plan to create a new joint venture company that will be owned 51% by RIL and the remaining by BP. The entity will take ownership of RIL’s existing Indian fuel retail network as well as access its aviation fuel business.

Reliance said in a statement: “The retail network will operate under the Jio-BP brand, signaling 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.

Subject to regulatory and other customary approvals, the joint venture is expected to be created during the first half of 2020.

Reliance Industries Limited chairman and managing director Mukesh Ambani said: “I am delighted that BP and Reliance are further building on their strong partnership. BP and Reliance are combining their knowledge, expertise and experience to provide Indian consumers world class products and services.

“We believe that together we will bring solutions that will benefit the fast-growing Indian market.”

The two companies entered into a partnership in 2011, with BP acquiring a 30% stake in RIL’s portfolio of exploration and production interests offshore India, including the major producing KG D6 gas-producing block off the east coast.

In 2017, the two oil companies agreed to formally cooperate on developing alternative fuels and mobility businesses.

BP Group chief executive Bob Dudley said: “India is one of the world’s most important energy markets – its transport and aviation sectors are growing and evolving rapidly.

“We aim to meet the country’s growing demand for mobility solutions, high-quality fuels and services through this new venture. This major expansion of our business here reinforces our long-term commitment to India.”