BPCL, OIL Sign Non-binding Agreement to Build Refinery, Petchem Complex in AP

The Bharat Petroleum Corporation Limited (BPCL) signed a non-binding agreement with Oil India Limited (OIL) 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 million metric tonnes per annum (MMTPA), is estimated to cost Rs. 1000 billion.

The Ramayapatnam complex will feature a 1.5 MMTPA ethylene cracker unit, the first of its kind in southern India, with a 35% petrochemical intensity. 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 taking 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, said Sanjay Khanna, Director (Refineries) with additional charge of Chairman & Managing Director, BPCL.