By Ron Bousso and Nidhi Verma
LONDON/NEW DELHI, July 9 (Reuters) - BP has paid
Reliance Industries $1 billion to set up a joint
network of thousands of petrol stations across India to tap the
country's rapidly growing energy demand.
BP will hold 49% and Reliance the remaining 51% in the new
company called Jio-bp, which will expand Reliance's current
1,400 retail sites up to 5,500 over the next five years, the
pair said in a statement on Thursday after announcing the
venture last August.
Jio-bp will also expand from 30 to 45 airports and plans to
increase its staff from 20,000 to 80,000 over five years.
The plan comes as billionaire Mukesh Ambani, the owner of
Reliance, which operates the world's biggest refining complex in
Jamnagar, is currently in talks with oil group Saudi Arabia's
Aramco to sell a 20% stake in the oil to chemical conglomerate.
UK oil group BP, along with many industry peers are aiming
to sharply increase their global customer base in the coming
decades as part of their shift to low-carbon energy, aiming to
supply fuels and power even as demand for oil is expected to
decline.
Jio-bp aims to provide Indian consumers with advanced fuels
with lower emissions, electric vehicle charging and other low
carbon solutions over time, the statements said.
India "is a country that will require more energy for its
economic growth and, as it prospers, its needs for mobility and
convenience will accelerate," BP CEO Bernard Looney said in a
statement.
Shell and Abu Dhabi National Oil Co (ADNOC) also
both want to strengthen their presence in India.
Indian Prime Minister Narendra Modi wants Asia's third
largest economy to grow from $2.9 trillion gross domestic
production in 2019 to $5 trillion by 2025, which is set to drive
energy demand higher.
(Reporting by Ron Bousso; Editing by Elaine Hardcastle)
