The Union cabinet on Wednesday authorized state-owned Bharat Petroleum Corporation Ltd (BPCL) to invest an additional $1.6 billion in a Brazilian oil bloc.
The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has approved additional investment from Bharat PetroResources Ltd (BPRL), a wholly owned subsidiary of BPCL, for the development of the BM-SEAL-11 concession project in Brazil, one says the official statement.
The block is due to start production from 2026-27.
BPRL holds a 40% stake in the block. Brazilian national oil company Petrobras is the operator with a 60% stake.
Several oil discoveries have been made in the block, which is under development.
BPCL originally partnered with Videocon to take the stake in the block in 2008. IBV Brasil SA, a 50-50 joint venture between Videocon and BPRL Ventures NV, a unit of BPRL (the upstream arm of BPCL ), held 40%. But after the bankruptcy of Videocon, BPRL now holds the entire capital of 40%.
CCEA’s nod will help access equity oil to enhance India’s energy security and diversify the country’s crude oil supply.
Stating that Indian oil companies have expressed interest in sourcing more crude oil from Brazil, the statement said it also boosts India’s presence in Brazil, which will open up more trade routes in neighboring countries. Latin America.
The CCEA also approved an increase in the limit of BPCL’s shareholding in BPRL and the authorized share capital of the company from Rs 15,000 crore to Rs 20,000 crore (to be subscribed by BPCL from time to time).
In addition, the limit of equity participation of BPRL International BV in International BV Brasil Petroleo Limitada, through an intermediary wholly owned subsidiary, to Rs 15,000 crore from the current limit of Rs 5,000 crore was also approved.
(Only the title and image of this report may have been edited by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)