Cabinet approves $1.6-billion investment by BPCL subsidiary in Brazil

Our Bureau | | Updated on: Jul 27, 2022

The start of production from the BM-SEAL-11 project is expected from 2026-27

The Cabinet Committee on Economic Affairs (CCEA) on Wednesday approved an additional investment of $1.6 billion (about Rs 12,000 crore) by Bharat PetroResources (BPRL), a subsidiary of state-run Bharat Petroleum Corporation (BPCL), for development of BM-SEAL-11 Concession Project in Brazil.

BPRL has 40 per cent participating interest (PI) in this concession along with Petrobras, National oil company of Brazil, as the operator with 60 per cent Participating Interest, the Ministry of Petroleum and Natural Gas (MoPNG) said in a statement.

The start of production from the BM-SEAL-11 project is expected from 2026-27, it added.

Strengthening energy security

On the rationale behind the investment, MoPNG said it will help strengthen India’s energy security. Besides, diversifying the country’s crude oil supply.

“Indian oil companies have expressed interest in sourcing more crude oil from Brazil. Strengthening India’s foothold in Brazil, which will further open business avenues in neighbouring Latin American countries. It will also strengthen the bilateral ties between the countries,” MoPNG said.

India-Brazil joint statement

In April this year, India and Brazil in a joint statement recognised the importance of robust investment in the Brazilian oil and gas sector by Indian companies and reaffirmed their commitment to safeguard existing investments, while encouraging further bilateral investments. India also expressed interest in sourcing crude oil under long term special contracts.

The joint statement was issued after a meeting between Brazil’s Minister of Mines and Energy Bento Albuquerque and India’s Minister of Petroleum & Natural Gas Hardeep Singh Puri. The Brazilian Minister was in India on an official trip between April 19-22.

Published on July 27, 2022
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