Bharat Petroleum looks for expansion; to invest Rs 1 lakh crore in next 5 years

Bharat Petroleum Corporation Limited (BPCL) will invest Rs 1 lakh crore in next five years between 2016 and 2021 to expand its business, according to media reports.

Due to decrease in crude oil prices and reduced losses on fuel sales, BPCL will invest mainly to increase the company's refining capacity by 40%. As per Live Mint reports, the company is expanding in the city gas sector and is planning to establish itself as an oil and gas explorer and producer.

"We have embarked on a new five-year plan called project Sankalp, under which the company will be doubling its investments from Rs 50,000 crore to Rs 1,00,000 crore in the next five years," said S Vaaradarajan, chairman and managing director, BPCL.

Live Mint reports say that out of Rs 1 lakh crore, Rs 40,000 crore will be invested in BPCL's crude oil refining business which will help the company increase its refining capacity from 30 million tonnes per annum to 50 mtpa by 2021. 

Around Rs 25,000 crore will be invested in the company's oil and gas exploration and production sector. 

As part of the Sankalp initiative, the company is planning to go global.

"We are looking at setting up marketing infrastructure in the neighbouring countries as well as in regions such as the far east, Africa and Latin America," said Varadarajan to media.