HYDERABAD (Reuters) -Indian state-run firm Bharat Petroleum Corp and explorer Oil India will jointly build a 1-trillion-rupee ($11.38 billion) refinery and petrochemical complex in southern India, marking a strategic shift for the driller as it expands beyond upstream operations.
Oil India is considering taking a 10%-20% stake in the planned refinery in Andhra Pradesh state, while BPCL is seeking additional partners for the project, BPCL Chairman Sanjay Khanna said on the sidelines of an industry event in Hyderabad.
The refinery announcement comes as India, the world’s third-largest oil importer and consumer, continues to rely on fossil fuels and is trying to position itself as a refining and petrochemical hub.
Oil India is also ramping up its downstream presence through its unit Numaligarh Refinery Ltd (NRL), which is expanding its refinery in the state of Assam to 180,000 barrels per day by March 2027.
The proposed Andhra Pradesh refinery, with a capacity of 180,000 to 240,000 barrels per day, has received key statutory approvals and 6,000 acres of land from the state government, with pre-project work underway, BPCL said in a statement.
The petrochemical complex will feature a 1.5-million-tonne ethylene cracker and is expected to start commercial operations by fiscal year 2030.
Oil India is also partnering with BPCL and NRL on a 700-km fuel pipeline from Siliguri to Mughalsarai that will carry petrol, diesel and jet fuel. BPCL will hold a 50% stake in the project, while Oil India and NRL will share the remainder.
BPCL on Tuesday additionally said it has partnered with Fertilisers & Chemicals Travancore to market organic fertilisers from its Kochi biogas plant.
BPCL is India’s second-biggest state-run refiner, with 706,000 barrels per day of crude capacity across three refineries.
($1 = 87.8950 Indian rupees)
(Reporting by Sethuraman NR, Nidhi Verma and Yagnoseni Das; Editing by Mrigank Dhaniwala, Nivedita Bhattacharjee and Sonia Cheema)
