The state-owned Bharat Petroleum Corporation Ltd. (BPCL) was given permission by the Union Cabinet on Wednesday to invest an additional USD 1.6 billion in a Brazilian oil block.
An additional investment by Bharat PetroResources Ltd (BPRL), a fully owned subsidiary of BPCL, for the construction of the BM-SEAL-11 Concession Project in Brazil, has been approved by the Cabinet Committee on Economic Affairs, which is presided over by Prime Minister Narendra Modi.
The block will go into production between 2026 and 2027. A 40% ownership share in the block belongs to BPRL. Petrobras, Brazil’s state-owned oil firm, owns 60% of the operating company. In the block, which is now being exploited, numerous oil finds have been made.
Initially, BPCL and Videocon worked together to acquire the interest in the block in 2008. A joint venture between Videocon and BPRL Ventures NV, a division of BPRL (the upstream branch of BPCL), held a 50/50 interest in IBV Brasil SA, which held 40%. But as a result of Videocon’s bankruptcy, BPRL now fully owns the 40% interest.
The approval from the CCEA will make equity oil more accessible, enhancing India’s energy security and diversifying the nation’s crude oil supplies.
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