The Union Cabinet on Wednesday approved state-owned Bharat Petroleum Corporation Limited (BPCL) to invest an additional USD 1.6 billion in a Brazilian oil block. The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has approved additional investment by Bharat PetroResources Ltd (BPRL), a wholly owned subsidiary of BPCL, for the development of the BM-SEAL-11 concession project in Brazil. said in the official statement.
The block is to start production from 2026-27. BPRL holds 40 per cent stake in this block. Brazil’s national oil company Petrobras is the operator with a 60 percent interest.
Several oil discoveries have been made in the block, which are still being developed. Originally, BPCL had partnered with Videocon to pick up 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), holds a 40 per cent stake. , But after the bankruptcy of Videocon, now the entire 40 percent stake is with BPRL.
The CCEA approval will help strengthen India’s energy security and access equity oil to diversify the country’s crude oil supply. Stating that Indian oil companies have expressed interest in sourcing more crude from Brazil, the statement said it also strengthens India’s foothold in Brazil, which will open up business avenues in neighboring Latin American countries. . CCEA approved the increase in the limit of equity investment by BPCL in BPRL and the authorized share capital of the company from Rs 15,000 crore to Rs 20,000 crore (subscribed by BPCL from time to time).
Simultaneously, the limit for equity investment by BPRL International BV through an intermediate wholly owned subsidiary in International BV Brasil Petroleo Limitedada was also approved to be Rs 15,000 crore from the current limit of Rs 5,000 crore.
read all breaking news And today’s fresh news Here