Shell looks to expand retail network in India.

Global oil & gas giant Royal Dutch Shell Plc, a $421-billion company, is eyeing investment opportunities in the Indian downstream segment, especially with the recent deregulation of diesel prices and opening of the market. The company is planning to expand its retail outlet network utilising its existing licence to set up 2,000 fuel stations.

The Netherlands-based energy and petrochemical group might also look at the upstream exploration and production segment and is pinning its hopes on the indications that the government would introduce an open acreage licensing policy (OALP).

'We are looking to expand retail outlet network. The price deregulation happened not so long ago. There are many things we have to get in place. Running a retail station starts with land acquisition, and that takes time. We are doing some work to devise a realistic growth plan,' Yasmine Hilton, country chairman, Shell Group of Companies in India, told Business Standard. 'We have the potential to grow. We are looking at the right opportunities,' added Harry Brekelmans, member of the company's executive committee and director (projects & technology), who was also present.

Brekelmans had arrived in India last week, as part of a business delegation, along with Dutch Prime Minister Mark Rutte. The visit included meetings with Prime Minister Narendra Modi. India had deregulated diesel prices in October last year, linking the domestic rates of the transport fuel with global benchmarks. Since then, multiple companies, including Reliance Industries Ltd (RIL), Essar and ONGC subsidiary Mangalore Refinery and petrochemicals (MRPL), have announced plans to set up retail pumps, even as existing retailers - public-sector firms Indian Oil, Bharat Petroleum and Hindustan Petroleum - brace for competition.

Brekelmans also said, with the government actively reviewing its new exploration and licensing policy (NELP), the company was hoping the policy 'develops to an extent where it is competitive'.

Hilton added: 'We are quite interested in the new policy which suggests the open acreage licensing policy (OALP) will come. We think that will give us a different opportunity to look at.' OALP, which gives companies the freedom to choose which blocks they want to bid for and the time of applying for a block, is generally preferred by investors.

BS