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India rejects BP’s application to market aviation turbine fuel

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Hydrocarbon Engineering,

The Indian government has rejected BP's application for selling aviation turbine fuel (ATF) to airlines. The country’s Petroleum Ministry informed BP of the decision earlier this month, noting that the company’s US$477 million investment in India so far does not qualify it to receive a fuel retailing licence; however, it has permitted BP to submit a fresh application detailing future investments.

A licence to retail petrol, diesel or ATF is contingent upon a company investing or proposing to invest Rs.2000 crore (or US$500 million) in oil and gas exploration and production, refining, pipelines or terminals within 10 years. BP’s US$7.2 billion investment in 21 of Reliance Industries’ exploration blocks is not being considered as capital investment.

“BP has been continuously engaging with the Ministry of Petroleum and Natural Gas regarding the licensing application, and we are confident of meeting the requirements,” said a BP spokesperson. “We will continue to work closely with government authorities and urge them to review the decision.”

Edited from various sources by Rosalie Starling

Sources: The Tribune India, Times of India, TravelBiz Monitor

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