The company is expanding into the exploration and production (E&P) business in order to hedge price risks in a highly volatile market. It has earmarked Rs 1,000-1,500 crore for that purpose.

A senior BPCL official was quoted to have said, "We are holding talks with ONGC for a partnership to enter deep-sea exploration. We can jointly bid for an exploration block under the new exploration licensing policy ((NELP)-IV)."

S. Behuria, chairman and managing director of BPCL, told the press that the corporation was considering the entire gambit of upstream operations - from exploration to the production and development of oil/gas fields. He also added that the company would allow bids for exploration blocks in NELP-IV.