Aramco, Oil India Eyes to Acquire Stakes in BPCL’s Andhra Greenfield Refinery

Bharat Petroleum Corporation Ltd is exploring strategic partnerships for its proposed refinery and petrochemical project in Andhra Pradesh, as it looks to bring in investors and share project equity. 

Potential Investors and Equity Structure 

According to a Business Standard report, Saudi Aramco and Oil India Ltd are expected to acquire stakes in the proposed project of Bharat Petroleum Corporation Ltd. BPCL is looking to dilute 30–40% equity in the refinery.  

Saudi Aramco is likely to acquire around a 20% minority holding, while Oil India may take close to a 10% stake. BPCL may also offload an additional 4–5% equity to banks that have expressed interest in participating in the project.  

Project Location and Scale 

The refinery-cum-petrochemical complex is planned near the Ramayapatnam port in Nellore district of Andhra Pradesh. The project is intended to cater to rising domestic fuel demand and enhance petrochemical exports.  

The Andhra Pradesh government has already allotted about 6,000 acres of land for the development. 

Investment Size and Capacity Plans 

BPCL has estimated the investment for the project at over ₹96,000 crore and proposed a refining capacity of 9–12 million tonnes per annum.  

The final project cost, however, could vary by as much as 30% from initial estimates due to design and configuration complexities associated with large refineries. Higher petrochemical capacity is also being planned in line with demand trends. 

Investment discussions are expected to advance once the detailed feasibility report is completed. The report is likely to be ready by the end of February and will determine the final cost and configuration of the refinery. 

Read More: Crude Oil Prices in Focus After PPAC Releases Data on Domestic Production and Imports! 

Bharat Petroleum Corporation Share Price Performance  

As of December 30, 2025, at 10:35 AM, Bharat Petroleum Corporation Ltd share price is trading at ₹374.35 per share, reflecting a gain of 0.74% from the previous closing price. Over the past month, the stock has gained by 5.75%. 

Conclusion 

As BPCL moves forward with its Andhra Pradesh greenfield refinery, the proposed stake sale to Saudi Aramco, Oil India and potential banking partners could play a key role in shaping the scale and funding structure of the project. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.  

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.