The state-owned Bharat Petroleum Corporation Limited (BPCL) is betting a debt-fuelled stake in an offshore oil development project in Brazil to diversify its crude oil supply chain.
BPCL, one of India’s primary Oil Marketing Companies (OMCs), is to issue a $3-billion bond sale to invest in the development of the SEAP-I oil and gas field in Brazil, sources told Bloomberg. The SEAP-I project got approval from Brazil’s state oil major earlier this year and is expected to produce oil in 2030.
The company will raise the money through several tranches and has reportedly held roadshows in London, Singapore and Dubai to assess investor sentiment on the plan.
$2.8 billion from the bond sale will fund its stake in the Brazil project, while the remaining proceeds will cover company debt maturing next year. BPCL, through its wholly owned subsidiary Bharat PetroResources Limited (BPRL), holds the largest equity interests in Brazil, with six assets. The company only holds seven assets in India.
A few months back, BPCL had signed an agreement to acquire the remaining stake in IBV Brasil Petroleo Ltda from Videocon Energy Brazil Ltd, making it the company’s wholly owned overseas subsidiary.
“The acquisition reflects BPCL's continued focus on building a resilient and future-ready energy portfolio that supports the India's growing energy needs while strengthening its presence in the global energy landscape,” BPCL said.
Bharat PetroResources holds 40 per cent in the SEAP-I project, operated by Brazil’s state-owned oil company Petrobras. According to Texas-based magazine Hydrocarbon processing, the company already has direct dealings with Petrobras, with a $780 million deal for 12 million barrels for fiscal 2027. Brazil is India’s fifth-biggest crude supplier.
The move comes as many Indian OMCs expand upstream operations in different international markets. Indian Oil Corporation and Oil India Limited announced a fresh oil and gas discovery in Libya’s Ghadames Basin. Oil and Natural Gas Corporation is also exploring the possibility of taking over the operation of two oil blocks in Venezuela.
