Mumbai, September 24, 2022: 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, today signed a Memorandum of Understanding (MoU) with M/s Petrobras, the national oil company of Brazil.
The MoU was signed by Arun Kumar Singh, Chairman & Managing Director, BPCL and Caio Paes de Andrade, CEO Petrobras, in presence of Pankaj Jain, Secretary, MoPNG, Indian Ambassador to Brazil and other officials from MoPNG, in Brazil.
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.
Speaking on the development, Arun Kumar Singh, C&MD BPCL, said, “We are delighted to announce that we as a company are moving a step further and trying to better the energy security in our country. This association with Petrobas will hopefully help us achieve the required goal. The latest approval by honourable PM Modi’s cabinet to invest in Brazil will help diversify India’s crude oil supply and is an attempt to procure equity oil overseas. Strengthening India’s foothold in Brazil will further open business avenues in neighboring Latin American countries.”
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.
Petrobas is a publicly-held corporation that operates in an integrated and specialized manner in the oil, natural gas and energy industry. They are recognized worldwide for our oil and natural gas exploration and production technology in ultra-deep waters. However, their business goes beyond the reach of the field and oil and gas extraction. This means a long process where they transport oil and gas to their refineries and natural gas treatment units, which must be equipped and constantly evolving to supply the best products.