BM-SEAL-11 investment to diversify India’s crude oil supply
The Cabinet Committee on Economic Affairs (CCEA) has approved US$1.6 billion (about Rs.12,000 crore) additional investment by Bharat Petro Resources Ltd (BPRL) for development of BM-SEAL-11 Concession Project in Brazil, saying it will be access to equity oil to strengthen India’s energy security.
The CCEA also approved following:
To increase in the limit of equity investment by Bharat Petroleum Corporation Limited (BPCL) in wholly-owned subsidiary (WOS) 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).
To authorise increase in the limit of equity investment by BPRL International BV in International BV Brasil Petroleo Limitada, through intermediate WOS, to Rs.15,000 crore from the current limit of Rs.5,000 crore that is an increase of Rs.10,000 crore.
BM-SEAL-11 is expected to commence production from 2026-27.
The equity oil will help in:
diversifying India’s crude oil supply and 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.
Further strengthening the bilateral ties between the countries.
BPRL has 40% Participating Interest (PI) in this Concession along with Petrobras, National oil company of Brazil, as the Operator with 60% Participating Interest.
BPRL has been associated with exploration and development of this project in Brazil since 2008. fiinews.com
