Oil marketing company Bharat Petroleum Corporation Ltd, on Monday announced a mega foray into oil exploration and production business and has earmarked a budget of Rs 1,000-1,500 crore (Rs 10-15 billion).

The company "will look into a mix of exposure of exploration, development and production with a budget of Rs 1,000-1,500 crore over the next five years," BPCL chairman and managing director S Behuria said in Mumbai.

Addressing shareholders at the annual general meeting, he said it has become necessary for BPCL to explore other avenues for securing crude by entering the upstream sector in order to have reasonable supply security, hedging of price risks and benefits of an integrated supply chain in the volatile oil market.

Behuria said it had also become imperative to enter the gas business to maintain its share in the energy market in view of the recent trend of increasing displacement of liquid fuels by natural gas as an environment friendly product.

On the government decision to divest 41 per cent stake in BPCL through a public issue, he said the company was taking necessary steps in preparing accounts as per US GAAP.

To meet stiff competition in the retail sector, Behuria said the retail network would be increased by about 700 new sites this year.