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India Approves $1.6 Billion Investment By Bpcl’S Unit In Brazil & More Breaking News

In a boost to overseas oil exploration, the Union Cabinet on Wednesday approved an additional investment of $1.6 billion (about Rs 12,000 crore) in Bharat PetroResources Ltd (BPRL).

The Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi approved the additional investment for the development of BM-SEAL-11 concession project in Brazil by BPRL, a wholly owned subsidiary of Bharat Petroleum Corporation Ltd (BPCL).

The block is to start production from 2026-27. BPRL has a 40 percent stake in the block. Brazil’s national oil company ,Petrobras, is the operator with a 60 percent stake. Multiple oil discoveries have been made in the block, which is being developed now.

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Originally, BPCL had partnered with Videocon for taking a 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 percent. But after the bankruptcy of Videocon, BPRL now owns the entire 40 percent stake.

The CCEA nod will help access equity oil to strengthen 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 strengthens India’s foothold in Brazil, which will further open business avenues in neighbouring Latin American countries.

The CCEA also approved an increase in the limit of equity investment by BPCL in BPRL and authorised share capital of the company ,from Rs 15,000 crore to Rs 20,000 crore (to be subscribed by BPCL from time to time).

Also, the limit of equity investment by BPRL International BV in International BV Brasil Petroleo Limitada, through an intermediate wholly-owned subsidiary, to Rs 15,000 crore from the current limit of Rs 5,000 crore was also approved.

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