In a major setback to BP, petroleum minister Dharmendra Pradhan on Monday said that government has rejected an application...
In a major setback to BP, petroleum minister Dharmendra Pradhan on Monday said that government has rejected an application of the UK-based energy major for fuel retailing business in India. This is because the global energy firm does not meet the requisite criteria to obtain a fuel retailing licence here.
BP Exploration (Alpha), a wholly owned subsidiary of BP plc, had on June 11, 2014 submitted an application for authorisation to market aviation turbine fuel (ATF) claiming to have invested $477 million (inlcuding $259 million of capex investment) and proposed investment of $2.3 billion.
“To get marketing rights for transportation fuels, namely petrol, diesel and ATF applicant must meet the requirements as per clause 3 of marketing resolution of March 8, 2002. The requirements interalia, include investment or proposed investment of Rs 2,000 crore in exploration or production, refining, pipeline or terminals leading to additionality to the existing assets and/or creation of new assets in the eligible activities,” Pradhan informed the Lok Sabha on Monday.
However, the oil regulator Directorate General of Hydrocarbons (DGH) has reported that BP share of expenditure was $ 508 million between FY12 and FY14. Of this, capital expenditure (capex) component is $171 million operational expenditure (opex) is $337 million.