BPCL signs crude supply agreement with Petrobras

New Delhi: In a landmark development to diversify crude oil sourcing for energy security in India, Bharat Petroleum Corporation Limited (BPCL), a ‘Maharatna’ and a Fortune Global 500 Company on Saturday signed a Memorandum of Understanding (MoU) with Brazilian oil firm Petrobras.

The signing of the MOU will strengthen future crude oil trade relations between the two companies and explore potential crude import opportunities by BPCL, on a long term basis, especially considering the current geopolitical situations.

The MoU was signed by Arun Kumar Singh, Chairman & Managing Director, BPCL and Caio Paes de Andrade, CEO Petrobras, in the presence of Pankaj Jain, Secretary, MoPNG, Indian Ambassador to Brazil and other officials from MoPNG, in Brazil.

Earlier, Mint reported on 16 September about India set to sign long-term contracts to procure at least 2 million tonnes (mt) of crude from Brazil’s Petroleo Brasileiro SA (Petrobras) and 1 mt from Columbia’s state-run Ecopetrol SA.

“Bharat PetroResources Limited (BPRL) plans to invest $1.6 billion to develop an oil block in Brazil in an attempt to procure equity oil overseas. Through its fully owned subsidiary, Bharat PetroResources Limited, BPCL has a stake in the upstream sector in an ultra- deep water hydrocarbon block in Brazil, owned and operated by M/s Petrobras. The field development plan and final investment decision is expected to be declared soon,” the company said in a statement.

The field development plan and final investment decision is expected to be declared soon,

For the first time, India will be inking a long-term supply deal with Petrobras, one of the few global oil majors increasing production.

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