BP's partnership with Reliance continues beyond exclusivity, eyes oil, gas, and EV ventures

Global energy giant BP Plc's formal exclusivity with Reliance Industries Ltd may have ended, but the strategic partnership between the two companies continues to thrive. According to BP's outgoing India head, Sashi Mukundan, BP remains committed to exploring oil, gas, and mobility ventures in India with the Mukesh Ambani-led firm due to an unwritten mutual understanding.

In 2011, BP invested USD 7.2 billion to acquire a 30% stake in 23 oil and gas blocks of Reliance, with the KG-D6 block being the cornerstone of the deal. This partnership included a 10-year exclusivity period during which BP would only engage in Indian energy projects with Reliance. Despite the exclusivity clause expiring, the companies maintain their collaboration, driven by trust rather than contracts.

Mukundan highlighted the seamless relationship between BP and Reliance, emphasizing that issues are resolved through direct communication between the leaders of both companies. This partnership, initially focused on upstream oil and gas assets, has now expanded into retail and electric vehicle (EV) ventures.

BP continues to prioritize collaboration with Reliance, even rejecting opportunities from other firms. Mukundan explained that the companies’ exclusivity remains intact from a "relationship standpoint." For Reliance, BP remains its strategic partner of choice, fostering joint initiatives and resisting external approaches.

Reflecting on why BP chose Reliance over other Indian firms like state-owned ONGC, Mukundan cited Reliance’s substantial exploration acreage and opportunities for material growth. Recently, BP, Reliance, and ONGC teamed up to bid for a Gujarat offshore block, marking a powerful partnership across public and private sectors.

Mukundan outlined BP's investment strategy, which focuses on four pillars: resilient hydrocarbons, lubricants, mobility, and renewables. He emphasized the need for fossil fuels to meet India’s growing energy demands, with BP-Reliance’s KG-D6 block currently accounting for one-third of the country’s gas production. Plans are underway to invest billions in further exploration and production.

Beyond oil and gas, BP is expanding into EV charging infrastructure through its Jio-BP joint venture with Reliance. The venture has established 5,000 charging points, covering a significant portion of India’s total network. Additionally, BP is actively supporting low-carbon solutions through startups and internal innovations. Mukundan also emphasized the importance of talent development, citing BP’s technology center in Pune and plans for another in Bengaluru. As BP and Reliance continue to deepen their collaboration, their joint efforts across various energy sectors aim to shape India’s energy future, focusing on sustainability and growth.