Days after Reliance Industries and BP Plc together announced investments to the tune of $6 billion in the KG-D6 block for developing new gas fields, Russian oil major Rosneft is set to tap the Indian retail fuel market in a big way.
According to Union Petroleum minister Dharmendra Pradhan, Rosneft has big plans for the Indian retail fuel market. “Rosneft, the Russian oil major, who recently took over Essar Oil, are planning in a big way to tap retail fuel market in India," he told reporters after inaugurating City Gas Distribution (CGD) Project to supply eco-friendly natural gas to households, industries and transport sector.
The firms also agreed on a strategic cooperation on new opportunities for conventional and unconventional fuel trading and marketing, including jointly setting up petrol pumps.
Asked about the size of investment to be made by Rosneft and Essar to tap the fuel retailing market, Pradhan said both companies had invested USD 13 billion in Indian market in the last fiscal.
"This was one of the biggest deals in the oil industry in the world," he added, referring to Rosneft taking over Essar Oil.
The minister’s statement comes just three days after Reliance Industries and BP plc announced investments in the KG-D6 block after an eight-year hiatus. Pradhan chose to highlight these developments as achievements of a reform-friendly government at the Centre.
“In the beginning of the second quarter of this year, BP and RIL had announced more than USD 6 billion investment in India,” Pradhan said. “This shows the progressive and reformative nature of the Narendra Modi government.”