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Last Updated: Friday, 24 March 2006, 13:17 GMT
BP abandons Indian refinery plan
BP tanker
BP had been seeking opportunities in the expanding Indian market
Oil giant BP has scrapped joint plans with the Indian government to build a huge refinery in Punjab.

In October, BP signed a letter of intent with state-run Hindustan Petroleum Corporation Limited (HPCL).

It had agreed to build a refinery costing $3bn (1.73bn), with a capacity of 180,000 barrels of oil a day.

But BP has pulled out of the deal, despite being keen to access the Indian market, which has seen a number of major oil and gas discoveries.

After speculation that the two sides struggled to agree on terms, BP aid it wanted to focus on other opportunities elsewhere.

"We do not intend to take the letter of intent we signed with HPCL forward to the joint venture stage," a BP spokesman said.

"We have lots of different opportunities elsewhere around the world for investment and we will not be continuing discussions with HPCL."

Shares in BP were up 9 pence, or 1.3%, at 664.5p on Friday.

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