Shares of BP PLC (LON: BP.) have soared nearly 3% in London this morning on reports over the weekend that the oil giant has invested £790 million to up its stake in the joint venture with Reliance Industries.
Under the terms of the deal, BP will get a 49% stake in the “Reliance BP Mobility Limited (RBML)” joint venture in India. Reliance is India’s largest private company owned by Mukesh Ambani, the country’s richest man. After this deal, Ambani surpassed Warren Buffett to become the 8th richest person in the world.
“Reliance is expanding on its strong and valued partnership with BP, to establish a pan-Indian presence in retail and aviation fuels,” said Ambani.
The RMBL currently has 1,400 fuel retail sites. The firm has an aggressive strategy that forecasts increasing the number of fuel retail sites to 5,500 in the next five years. To this end, RMBL has committed to increasing its workforce from around 20,000 to 80,000.
BP share price is now trading around 300p again, as buyers face a horizontal resistance at 302p.