Indian refiners Bharat Petroleum Corporation (BPCL) and Oil India (OIL) signed a non-binding MoU to jointly develop a greenfield refinery and petrochemicals complex near Ramayapatnam Port in the southern Indian state of Andhra Pradesh (AP), The Hindu Businessline reports.

Investment and capacity: The project, estimated at INR 1 tn (USD 11.4 bn), will have a refining capacity of 9-12 mn tonnes per annum (MMTPA). It will also include a 1.5 MMTPA ethylene production unit, giving the complex a 35% petrochemical output share, meaning more than one-third of the output will be petrochemical products instead of fuels.

Project status: BPCL said the refinery is expected to start operations in FY 2030. The firm has already secured about 6k acres of land from the AP government and obtained key statutory clearances. Pre-project work is underway, including feasibility and design studies.

Equity and partnership: Under the MoU, OIL is evaluating a minority stake in the proposed venture, subject to due diligence and board approvals. The MoU marks the start of technical and financial evaluations that will precede a final investment decision.

Context: The Ramayapatnam project is part of BPCL’s plan to expand its refining and petrochemical footprint. The state-run refiner currently operates three facilities in Mumbai, Kochi, and Bina, with a combined capacity of 35.3 mn MMTPA, Fortune India reports.

Background: Saudi energy major Aramco is in talks to acquire a 20% stake in the Ramayapatnam refinery as part of its planned INR 8.3 tn (USD 100 bn) downstream investments in India, The Hindu reports.

BPCL DEFENDS RUSSIA CRUDE SOURCING-

The BPCL defended its crude sourcing, including Russian oil, as purely guided by techno-commercial viability and refinery needs, not origin, Press Trust of India reports, citing MD Sanjay Khanna. The Indian Petroleum Ministry also clarified that import decisions are made by individual refiners, not the government.

US SANCTIONS FREEZES OIL INDIA’S USD 300 MN DIVIDEND-

Mumbai-based Oil India (OIL) said around INR 25 bn (USD 300 mn) in dividend income from its Russian oil-field investments is stuck in Russian banks due to US sanctions on the operating entities, The Hindu Businessline reports. OIL holds 23.9% in Rosneft-run upstream producer JSV Vankorneft and 29.9% in Tass-Yuryakh Neftegazodobycha LLC through Singapore-based SPVs, which are jointly owned with state-owned Indian Oil Corporation and Bharat PetroResources.

Company statement: The company chairperson Ranjit Rath said OIL is seeking legal opinion on possible fund-transfer or settlement mechanisms, but did not indicate a timeline for repatriation. Sanctions on Russian energy companies have disrupted dividend payments to non-Russian partners since early 2024.

IOC, VITOL PLANS JV TO EXPAND GLOBAL FUEL TRADING-

IOC + Vitol SA to set up joint venture: New Delhi-based refiner Indian Oil Corporation (IOC) plans to set up a joint venture with global energy trader Vitol SA to expand its international crude and fuel trading operations, Reuters reports. The venture will be based in Singapore and is expected to operate for five to seven years, with an exit clause for both partners. The move will allow IOC to tap into Vitol’s trading network and global market access.

Purpose: The partnership aims to cut crude procurement costs, improve trading margins, and help IOC diversify its customer base across Asia and beyond. For Vitol, one of the world’s largest independent energy traders, the deal offers broader access to India’s expanding fuel market.

IOC SEEKS 24 MN BARRELS FROM AMERICAS FOR 1Q 2026-

IOC looking for 24 mn bbl from Americas: State-run refiner Indian Oil Corporation (IOC) has issued a tender to buy about 24 mn barrels of crude from the Americas for delivery between January and March 2026, Reuters reports.

Tender details: IOC is seeking both low-sulphur and high-sulphur grades from producers in the US, Brazil, and other Latin American countries, Bloomberg reports. Bids are due Friday.

Market context: The tender follows US sanctions on Rosneft PJSC and Lukoil PJSC, which have led to Indian refiners temporarily pausing fresh Russian oil purchases while seeking clarity on compliance. IOC recently bought about 2 mn barrels of West Africa crude from US-based oil major ExxonMobil Corporation through a separate tender.

SOLEX ENERGY TO INVEST USD 1.5 BN IN SOLAR MANUFACTURING-

Solex Energy to put INR 132 bn into boosting capacity, US expansion: India-based solar module manufacturer Solex Energy plans to invest about INR 132 bn (USD 1.5 bn) over the next five years to expand its solar manufacturing capacity and tap into the US market, Reuters reports. The firm currently operates a factory with 4 GW capacity in the western Indian state of Gujarat and aims to scale up to 10 GW of modules, 10 GW of cells, and 2 GW of ingot and wafer production.

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