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Rediff.com  » Business » BP chief to visit India in Oct

BP chief to visit India in Oct

Source: PTI
September 26, 2005 14:44 IST
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British Petroleum chairman Sir John Browne is likely to visit India next month to explore oil and gas opportunities in Asia's third largest economy.

Browne, during October 13-14, may explore deepwater exploration, refining and marketing opportunities in India, said an industry source.

During his two-day visit, Browne would meet Reliance Industries chairman Mukesh Ambani, Tata Group chairman Ratan Tata, Oil and Natural Gas Corp chairman and managing director Subir Raha, Indian Oil Corp chairman Sarthak Behuria, Bharat Petroleum Corp chairman and managing director Ashok Sinha and Hindustan Petroleum Corp chairman and managing director Mahesh Lal.

Browne will begin his visit in Mumbai and may also call on Prime Minister Manmohan Singh in New Delhi on October 14 besides a one-on-one with Petroleum Minister Mani Shankar Aiyar. Sources said this is Browne's first official visit to India. He had a three-day holiday in Kerala two years ago.

Topping his agenda is collaboration with ONGC or Reliance or Gujarat State Petroleum Corp in exploration of deepsea Krishna Godavari basin in Bay of Bengal.

Partnership in BPCL's proposed Rs 8,900 crore (Rs 89 billion) Bina refinery in Madhya Pradesh, HPCL's Rs 12,000 crore (Rs 120 billion) Bhatinda refinery in Punjab and IOC's Rs 18,000 crore (Rs 180 billion) oil refinery-cum- petrochem hub at Paradip in Orissa may also figure during discussions Browne would have with the Indian leaders, sources said.

Sources said ONGC and BP recently held preliminary talks in London for co-operation in deep-water exploration in the state-owned E&P flagship's Bay of Bengal blocks. But nothing came out of it.

The talks between ONGC and BP did not progress 'too well' because the supermajor is insisting on sole right to operatorship in the Indian blocks identified for co-operation while ONGC wants a role as joint operator. There would be further discussions in that direction when Browne will be in India.

BP's business in India is currently limited to selling lubricants through Castrol and a venture into renewable energy business with Tatas, Tata BP Solar.

Its biggest business in India is through its trading operations, where it sells 2 to 3 million tonnes per annum of crude and oil products with a turnover of 500 million dollars.

A close second is BP-controlled Castrol, which controls 26 per cent of the lubes market with a turnover of $300 million per annum.

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