The Union Cabinet on Wednesday gave approval to state-owned Bharat Petroleum Corporation Ltd (BPCL) to speculate a further USD 1.6 billion in a Brazilian oil block.
The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has authorized extra investment by Bharat PetroResources Ltd (BPRL), a wholly-owned subsidiary of BPCL, for the event of the BM-SEAL-11 Concession Project in Brazil, an official assertion stated.
The block is to begin manufacturing from 2026-27.
BPRL has a 40 per cent stake in the block. Brazil’s nationwide oil firm Petrobras is the operator with 60 per cent curiosity.
Multiple oil discoveries have been made in the block, which is being developed now.
Originally, BPCL had partnered with Videocon for taking the stake in the block in 2008. IBV Brasil SA, a 50-50 three way partnership between Videocon and BPRL Ventures NV, a unit of BPRL (the upstream arm of BPCL), held 40 per cent. But after the chapter of Videocon, BPRL now owns the complete 40 per cent stake.
The CCEA nod will assist to entry fairness oil to strengthen India’s power safety and diversify the nation’s crude oil provide.
Stating that Indian oil corporations have expressed curiosity in sourcing extra crude oil from Brazil, the assertion stated it additionally strengthens India’s foothold in Brazil, which can additional open enterprise avenues in neighbouring Latin American international locations.
The CCEA additionally authorized a rise in the restrict of fairness investment by BPCL in BPRL and authorised share capital of the corporate from Rs 15,000 crore to Rs 20,000 crore (to be subscribed by BPCL sometimes).
Also, the restrict of fairness investment by BPRL International BV in International BV Brasil Petroleo Limitada, by means of an intermediate wholly-owned subsidiary, to Rs 15,000 crore from the present restrict of Rs 5,000 crore was additionally authorized.
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