Bpcl Seeks A Tie-Up With Oil

In an effort to integrate itself vertically, state-owned Bharat Petroleum Corporation Ltd (BPCL) is planning to tie up with Oil India Limited (OIL) to enter the upstream exploration sector.

In a communication to the petroleum ministry, BPCL has said in the deregulated scenario, it is essential for any oil company to have presence both in exploration as well as refining and marketing sectors. According to BPCL, this will help it in growing internationally also.

In the communication, BPCL has cited the examples of some of the leading oil companies of the world that are merging with each other to draw on their joint strengths.

BPCL has said OIL will be an ideal partner because it has vast experience in exploring oil and gas in the country, especially in the Northeast. OIL produces around 3 million tonnes of crude annually.

BPCL has so far only been into refining and marketing of oil with a strong brand image. It has a chain of 4,560 retail outlets and three refineries, one each in Mumbai, Numaligarh and Kochi. The move is expected to help OIL in refining and marketing of oil products in case it takes over Numaligarh Refinery Ltd from BPCL.

While the other two oil marketing and refining companies, Indian Oil Corporation and Hindustan Petroleum Corporation Ltd, have already set up their exploration facilities, BPCL will be the latest to enter the sector.