BPCL and Oil India Ink MoU to Develop ₹1 Lakh Crore Greenfield Refinery-Petrochemical Complex in Andhra Pradesh

Bharat Petroleum Corporation Limited (BPCL) signed a non-binding MoU with Oil India Limited (OIL) here today to explore collaboration in developing BPCL’s upcoming Greenfield Refinery and Petrochemical Complex near Ramayapatnam Port in Nellore district of Andhra Pradesh. The MoU was held at the 28th Energy Technology Meet 2025 here in the presence of Pankaj Jain, Secretary, Ministry of Petroleum and Natural Gas (MoPNG).

The proposed facility, with a refining capacity of 9–12 Million Metric Tons Per Annum (MMTPA) and an estimated investment of ₹1 lakh crore (US$11 billion), will be a cornerstone of India’s downstream expansion.

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.

Speaking on the occasion, 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. 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.”

Dr. Ranjit Rath, Chairman & Managing Director, Oil India Limited and Chairman, Numaligarh Refinery Limited stated, “This collaboration reaffirms our commitment to pursue various strategic diversification initiatives to 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.”

Together, we aim to create long-term value, enhance energy security, and participate in India’s expanding refinery and petrochemical ecosystem. This collaboration also embodies OIL’s strategic intent to diversify into integrated energy ventures that support sustainable national growth

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—among the highest in the country. Supported by the Government of Andhra Pradesh, the project is slated for commercial operations by FY 2030, expected to catalyze industrial development, employment generation, and regional energy security.

On the occasion, the BPCL also entered two more landmark Memoranda of Understanding (MoUs) with Numaligarh Refinery Limited (NRL) and Fertilisers & Chemicals Travancore Limited (FACT), to drive Growth across refining, Petrochemicals, and Green Energy" .

These partnerships mark significant milestones in BPCL’s integrated growth strategy—spanning refining, petrochemicals, green energy, and logistics infrastructure—and reaffirm its commitment to building a sustainable and self-reliant energy future for India.