Oil India Ltd Inks Strategic Alliances with BPCL and NRL to Boost Growth Across Refining, Petrochemicals and Logistics Infrastructure

Oil India Limited (OIL), a Maharatna Public Sector Undertaking, has signed two significant non-binding Memoranda of Understanding (MoUs) with Bharat Petroleum Corporation Limited (BPCL) and Numaligarh Refinery Limited (NRL) at the 28th Energy Technology Meet 2025 in Hyderabad. These collaborations align with OIL's strategy to achieve integrated growth across the refining, petrochemical and Logistics value chains, reinforcing its commitment to India's self-reliant energy future (Atmanirbhar Bharat).

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The first major partnership is with BPCL to explore the development of the Rs 1 lakh crore (approximately US 11 billion) Ramayapatnam Greenfield Refinery and Petrochemical Complex in Andhra Pradesh. This proposed facility will have a refining capacity of 9-12 MMTPA and will feature the first 1.5 MMTPA ethylene cracker unit in South India. OIL is evaluating the possibility of taking a minority equity stake in this joint venture, with commercial operations slated for FY 2030.

The second strategic alliance involves a tripartite MoU between OIL, BPCL and NRL to enhance petroleum product evacuation logistics following NRL's expansion from 3 MMTPA to 9 MMTPA. This involves jointly exploring the development of a Rs 3,500 crore cross-country product pipeline from Siliguri to Mughalsarai via Muzaffarpur, along with augmenting depot infrastructure. Ownership of this pipeline project is planned to be shared, with BPCL holding 50 per cent and OIL and NRL each taking a 25 per cent stake.

These landmark MoUs collectively underscore OIL's proactive diversification into midstream and downstream activities, expanding its portfolio and strengthening the nation's energy security and logistics network. The projects, particularly the Ramayapatnam refinery and the new pipeline, are expected to catalyse industrial growth, generate employment and streamline the reliable supply of petroleum products across Eastern and Northern India.

About the Company

Oil India Ltd (OIL) is a fully integrated National Oil Company, actively involved in the exploration, development and production of crude oil and natural gas. Beyond upstream activities, the company is also engaged in the production of Liquefied Petroleum Gas (LPG), the transportation of crude oil and natural gas and has ventured into the generation of renewable energy. Additionally, OIL provides a range of Exploration & Production (E&P) related services for oil blocks, solidifying its comprehensive presence across the hydrocarbon value chain.

The stock’s 52-week high is Rs 535.70 per share and its 52-week low is Rs 322.15 per share. The company has a market cap of over Rs 68,000 crore and has been maintaining a healthy dividend payout of 26.1 per cent. The stock has a PE of 10x whereas the sectoral PE is 14x with ROE and ROCE of 13 per cent each. The President of India owns the majority of the stake, i.e., 56.66 per cent. The stock is up over 30 per cent from its 52-week low of Rs 322.15 per share.

Disclaimer: The article is for informational purposes only and not investment advice.