Oil India Limited Forges Strategic Alliances Worth ₹1.35 Lakh Crore with BPCL and NRL

Oil India Limited (OIL) has taken significant steps towards expanding its presence in the refining, petrochemicals, and logistics infrastructure sectors by signing two major Memoranda of Understanding (MoUs) with Bharat Petroleum Corporation Limited (BPCL) and Numaligarh Refinery Limited (NRL). These strategic alliances, valued at approximately ₹1.35 lakh crore, were formalized at the 28th Energy Technology Meet 2025 in Hyderabad.

Greenfield Refinery and Petrochemical Complex

The first MoU, signed between OIL and BPCL, outlines a collaboration for a massive ₹1 lakh crore project near Ramayapatnam Port in Nellore district, Andhra Pradesh. This Greenfield Refinery and Petrochemical Complex is set to be a game-changer in India's downstream sector.

Key details of the project include:

Feature	Details
Refining Capacity	9-12 MMTPA
Ethylene Cracker Unit	1.5 MMTPA
Estimated Investment	₹1 lakh crore (US$11 billion)
Commercial Operations	Planned by FY 2030
OIL's Involvement	Potential minority equity stake
Land Secured	6,000 acres from Andhra Pradesh Government
Current Status	Key statutory clearances obtained, pre-project activities in progress

Dr. Ranjit Rath, Chairman & Managing Director of OIL and Chairman of NRL, emphasized the strategic importance of this collaboration, stating, "This collaboration reaffirms our commitment to pursue various strategic diversification initiatives to Midstream and Downstream. Together, we aim to create long-term value, enhance energy security, and participate in India's expanding refinery and petrochemical ecosystem."

Cross-Country Petroleum Product Pipeline

The second MoU, a tripartite agreement between OIL, BPCL, and NRL, focuses on developing crucial logistics infrastructure to support NRL's expansion plans.

Key aspects of this agreement include:

Feature	Details
Project Scope	Cross-country petroleum product pipeline from Siliguri to Mughalsarai via Muzaffarpur
Associated Development	Augmentation of Depo infrastructure
Estimated Investment	₹3,500 crore
Ownership Structure	BPCL (50%), OIL (25%), NRL (25%)
Purpose	Efficient product evacuation post-NRL expansion
NRL Capacity Expansion	From 3 MMTPA to 9 MMTPA

This pipeline project is crucial for efficiently transporting petroleum products following NRL's significant capacity expansion.

Strategic Implications

These partnerships align with OIL's integrated growth strategy and the Government of India's vision of Atmanirbhar Bharat. By diversifying into midstream and downstream sectors, OIL aims to strengthen its position in the energy value chain and contribute to national energy security.

Mr. Sanjay Khanna, Director (Refineries) with additional charge of Chairman & Managing Director, BPCL, highlighted the significance of the Ramayapatnam complex, stating, "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."

As these projects move forward, they are expected to play a pivotal role in reshaping India's energy landscape, boosting self-reliance, and creating substantial value across the petrochemical and refining sectors.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-2.27%	+1.51%	-1.08%	+1.88%	-13.30%	+606.40%

Oil India Limited (OIL) has achieved a significant milestone in its commitment to India's energy security with the mechanical completion of its Numaligarh-Siliguri Product Pipeline (NSPL) upgradation project on October 12, 2025. This strategic enhancement marks a substantial leap in the company's midstream infrastructure capabilities, positioning OIL to meet the growing energy demands of the Northeastern region and beyond.

Key Project Highlights

The NSPL upgradation project showcases OIL's dedication to strengthening India's energy infrastructure. Here are the critical aspects of this achievement:

Aspect	Details
Project Name	Numaligarh-Siliguri Product Pipeline (NSPL) Upgradation
Completion Date	October 12, 2025
Capacity Increase	From 1.77 MMTPA to 5.50 MMTPA
Purpose	To handle increased product flows from Numaligarh Refinery

Strategic Importance

This upgrade is closely aligned with the ongoing Numaligarh Refinery Expansion Project by Numaligarh Refinery Ltd. (NRL), which aims to increase the refinery's capacity from 3.00 MMTPA to 9.00 MMTPA. The synergy between these projects underscores a comprehensive approach to enhancing the region's petroleum product supply chain.

Implications for Northeast India

The completion of the NSPL upgradation project is expected to have far-reaching effects on the energy landscape of Northeast India:

Enhanced Energy Security: The increased pipeline capacity will ensure a more robust and reliable supply of petroleum products to the region.
Economic Growth: Improved energy infrastructure can catalyze industrial development and economic activities in the Northeast.
Meeting Growing Demand: The upgrade positions OIL to effectively respond to the increasing demand for petroleum products in the region.

Commitment to National Energy Goals

Oil India Limited's successful completion of this project reaffirms its role as a key player in India's energy sector. By enhancing its midstream infrastructure, OIL is actively contributing to the nation's energy security and supporting the government's vision of a more energy-efficient and self-reliant India.

As the company continues to strengthen its position in the domestic energy market, such strategic investments in infrastructure are likely to play a crucial role in shaping the future of India's energy landscape, particularly in the Northeastern region.

With this significant upgrade, Oil India Limited demonstrates its capability to execute large-scale projects efficiently, further solidifying its status as a Maharatna CPSE under the Government of India.