Indian Economy News

Cabinet approves investment of Rs. 12,000 crore (US$ 1.6 billion) by BPCL's unit in development of Brazilian oil block

  • IBEF
  • July 29, 2022

On July 27, 2022, the Cabinet Committee on Economic Affairs (CCEA) approved an additional investment of Rs. 12,000 crore (US$ 1.6 billion) by Bharat PetroResources Ltd (BPRL), a wholly owned subsidiary of Bharat Petroleum Corporation Limited (BPCL), for the construction of the BM-SEAL-11 Concession Project in Brazil.

In addition, the CCEA approved an increase in the cap on equity investments by BPRL International BV in International BV Brasil Petroleo Limitada from the previous cap of Rs. 5,000 crore (US$ 627.95 million) to Rs. 15,000 crore (US$ 1.88 billion) through an intermediate wholly-owned subsidiary. The BM-SEAL-11 project is scheduled to begin in 2026–27.

According to CCEA, BPRL will now help in gaining access to equity oil to strengthen India's energy security and diversifying its supply of crude oil. Brazilian crude oil is a source of interest for Indian oil businesses.

Additionally, the move will improve India's position in Brazil, expanding business opportunities in neighbouring Latin American nations and enhancing bilateral connections between the two nations.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.