Oil India, BPCL and NRL sign pacts for ₹1 lakh crore refinery and ₹3,500 crore pipeline projects

State-owned Oil India Ltd (OIL) on Tuesday (October 28) said it has signed two Memoranda of Understanding (MoUs) with Bharat Petroleum Corporation Ltd (BPCL) and Numaligarh Refinery Ltd (NRL) during the 28th Energy Technology Meet 2025 held in Hyderabad, in the presence of Shri Pankaj Jain, Secretary, Ministry of Petroleum and Natural Gas (MoPNG).

These partnerships mark significant milestones in OIL’s integrated growth strategy across refining, petrochemicals, and logistics infrastructure, reaffirming its commitment to a sustainable and self-reliant energy future for India.

OIL and BPCL have entered into a collaborative framework to develop BPCL’s upcoming greenfield refinery and petrochemical complex near Ramayapatnam Port in Nellore district, Andhra Pradesh.

Also Read: Oil India, Hindustan Copper sign MoU for exploration of critical minerals

The proposed facility, with a refining capacity of 9–12 MMTPA and an ethylene cracker unit of 1.5 MMTPA, represents an estimated investment of ₹1 lakh crore (US$11 billion). 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.

In another development, OIL, BPCL, and NRL have signed a tripartite MoU to facilitate the evacuation of petroleum products following NRL’s expansion from 3 MMTPA to 9 MMTPA.

Also Read: Oil India sees restart of Mozambique LNG project by year end

The three organisations will jointly explore the development of a cross-country petroleum product pipeline from Siliguri to Mughalsarai via Muzaffarpur and augmentation of depot infrastructure with an estimated investment of ₹3,500 crore. The project will be jointly owned by BPCL (50%), OIL (25%) and NRL (25%).

Dr Ranjit Rath, Chairman and Managing Director, Oil India and Chairman, Numaligarh Refinery, stated, "This collaboration reaffirms our commitment to pursue various strategic diversification initiatives in Midstream and Downstream.

By partnering with BPCL, OIL, and NRL look forward to leveraging our collective strengths to unlock value creation and contribute to the nation’s energy security and distribution infrastructure."

Sanjay Khanna, Director (Refineries) with additional charge of Chairman & Managing Director, BPCL, said, "This collaboration marks a significant milestone in our journey to build world-class refining and petrochemical infrastructure in southern India.

Also Read: Oil India, GAIL sign MoU to boost natural gas collaboration, cleaner energy access

By joining hands with OIL, we are combining complementary strengths to create a project of strategic scale and sustainability. The Ramayapatnam complex will not only reshape BPCL’s portfolio but also reinforce India’s self-reliance in fuels and petrochemicals, in line with the vision of Atmanirbhar Bharat."

Shares of Oil India Ltd ended at ₹413.10, down by ₹9.60, or 2.27%, on the BSE.