OIL inks Strategic Alliances with BPCL and NRL to boost Growth across Refining, Petrochemicals and logistics infrastructure

At the 28th Energy Technology Meet 2025 being held in Hyderabad, Oil India Limited (OIL) signed two landmark Memoranda of Understanding (MoUs) with Bharat Petroleum Corporation Limited (BPCL) and Numaligarh Refinery Limited (NRL) in the august presence of Shri Pankaj Jain, Secretary, Ministry of Petroleum and Natural Gas (MoPNG). These partnerships mark significant milestones in OIL's integrated growth strategy-spanning refining, petrochemicals and logistics infrastructure-and reaffirm its commitment to building a sustainable and self-reliant energy future for India.

OIL and BPCL 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.

The proposed facility, with a refining capacity of 9-12 MMTPA (MMTPA) and a ethylene cracker unit of 1.5MMTPA, represents an estimated investment of ₹1 lakh crore (US$11 billion) and is anticipated to play a pivotal role in India's downstream sector expansion. The project is slated for commercial operations by FY 2030.

Under the MoU, the companies will evaluate opportunities for collaboration, including the possibility of OIL to take 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 Government of Andhra Pradesh, with pre-project activities in progress.

Speaking on the occasion, Dr. Ranjit Rath, Chairman & Managing Director, Oil India Limited and Chairman, Numaligarh Refinery Limited, stated: "This collaboration reaffirms our commitment to pursue various strategic diversification initiatives to Midstream and Downstream. By partnering with BPCL, OIL and NRL look forward to leveraging our collective strengths to unlock value creation and contribute to the nation's energy security and distribution infrastructure.

Together, we aim to create long-term value, enhance energy security, and participate in India's expanding refinery and petrochemical ecosystem. This collaboration also embodies OIL's strategic intent to diversify into integrated energy ventures that support sustainable national growth".

Mr. Sanjay Khanna, Director (Refineries) with additional charge of Chairman & 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."

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

Under this MoU, the three organisations will jointly explore the development of a cross-country petroleum product pipeline from Siliguri to Mughalsarai via Muzaffarpur and augmentation of Depo infrastructure with an estimated investment of ₹3,500 crore. The project will be jointly owned by BPCL (50%), OIL (25%) and NRL (25%).

The MoUs were signed in the presence of Mr. Pankaj Jain, Secretary, MoPNG; Dr. Ranjit Rath, CMD, OIL and Chairman, NRL, Mr. Sanjay Khanna, Director (Refineries) & C&MD (Addl. Charge), BPCL; and Mr. Bhaskar Jyoti Phukan, MD, NRL.

These two MoUs demonstrate OIL's commitment to pursue various strategic diversification initiatives, expanding its portfolio with strong integration across Midstream and Downstream. Collectively, these initiatives reflect OIL's alignment with Government of India's vision of Atmanirbhar Bharat-fostering self-reliance, sustainability, and energy security for the nation.

Shares of Bharat Petroleum Corporation Limited was last trading in BSE at Rs. 342.90 as compared to the previous close of Rs. 330.05. The total number of shares traded during the day was 853153 in over 8239 trades.

The stock hit an intraday high of Rs. 343.40 and intraday low of 332.25. The net turnover during the day was Rs. 288960269.00.

Shares of Oil India Limited was last trading in BSE at Rs. 422.70 as compared to the previous close of Rs. 419.45. The total number of shares traded during the day was 86944 in over 3836 trades.

The stock hit an intraday high of Rs. 424.70 and intraday low of 419.40. The net turnover during the day was Rs. 36747090.00.

Source : Equity Bulls

Keywords

BharatPetroleumCorporation INE029A01011 BPCL MoUs OilIndia INE274J01014