OIL inks pact with BPCL for Andhra refinery project, may pick up minority stake

New Delhi: Bharat Petroleum Corporation Limited (BPCL) on Tuesday signed three Memoranda of Understanding (MoUs) with Oil India Limited (OIL), Numaligarh Refinery Limited (NRL), and Fertilisers & Chemicals Travancore Limited (FACT).

PSU Watch is now on Whatsapp Channels. Click here to join

BPCL and OIL signed a non-binding MoU to explore collaboration in developing BPCL’s upcoming Greenfield Refinery and Petrochemical Complex near Ramayapatnam Port in Nellore district, Andhra Pradesh, a press release from BPCL said.

The proposed facility, with a refining capacity of 9-12 Million Metric Tonnes Per Annum (MMTPA) and an estimated investment of Rs 1 lakh crore (USD 11 billion), will be a cornerstone of India’s downstream expansion.

Under the MoU, the companies will evaluate opportunities for collaboration, including the possibility of OIL taking a minority equity stake in the proposed joint venture.

The project has already secured key statutory clearances and 6,000 acres of land from the Andhra Pradesh government, with pre-project activities currently in progress.

Speaking on the occasion, Sanjay Khanna, Director (Refineries) with additional charge of Chairman and Managing Director, BPCL, said, "This collaboration marks a significant milestone in our journey to build world-class refining and petrochemical infrastructure in southern India."

"By joining hands with OIL, we are combining complementary strengths to create a project of strategic scale and sustainability. The Ramayapatnam complex will not only reshape BPCL’s portfolio but also reinforce India’s self-reliance in fuels and petrochemicals, in line with the vision of Atmanirbhar Bharat," Khanna added.

In another major development, BPCL, OIL, and NRL signed a tripartite MoU to facilitate the efficient evacuation of petroleum products following NRL's expansion from 3 MMTPA to 9 MMTPA.

The agreement covers the joint construction of a 700-km cross-country product pipeline from Siliguri to Mughalsarai via Muzaffarpur, with an estimated investment of Rs 3,500 crore.

The pipeline, designed to transport Motor Spirit (MS), High-Speed Diesel (HSD), and Aviation Turbine Fuel (ATF), will be jointly owned by BPCL, which will hold a 50 per cent stake, while OIL and NRL will share the remaining 50 percent.

Furthering its green energy and waste-to-energy initiatives, BPCL signed an MoU with Fertilisers and Chemicals Travancore Limited (FACT) for the supply and trading of Fermented Organic Manure (FOM) and Liquid Fermented Organic Manure (LFOM) produced from BPCL's upcoming Municipal Solid Waste (MSW)-based Compressed Biogas (CBG) Plant at Brahmapuram, near Kochi Refinery.

The MoUs were signed at the '28th Energy Technology Meet 2025' held in Hyderabad.

(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)