Cabinet approves investment of ₹12,000 crore by BPCL's unit in development of Brazilian oil block | Mint
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Business News/ News / India/  Cabinet approves investment of 12,000 crore by BPCL's unit in development of Brazilian oil block
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Cabinet approves investment of ₹12,000 crore by BPCL's unit in development of Brazilian oil block

The BPRL also received the Cabinet approval to increase in the limit of equity investment by BPCL and authorised share capital of the firm from ₹15,000 crore to ₹20,000 crore.

CCEA says that BPRL will now help in getting access to equity oil to strengthen India’s energy security, while diversify India’s crude oil supply. REUTERS/Angus Mordant/File Photo (REUTERS)Premium
CCEA says that BPRL will now help in getting access to equity oil to strengthen India’s energy security, while diversify India’s crude oil supply. REUTERS/Angus Mordant/File Photo (REUTERS)

The Union Cabinet Committee on Economic Affairs (CCEA) on 27 July approved additional investment of $1,600 million (around 12,000 crore) by Bharat PetroResources Ltd (BPRL) for development of BM-SEAL-11 Concession Project in Brazil.

The BPRL -- a wholly owned subsidiary of Bharat Petroleum Corporation Limited (BPCL) -- also received the Cabinet approval to increase in the limit of equity investment by BPCL and authorised share capital of the firm from 15,000 crore to 20,000 crore, it said in a statement.

ALSO READ: IOC, BPCL, HPCL likely to post 10,700 crore loss in June quarter: ICICI Securities Report

Apart from this, the CCEA authorised the increase in the limit of equity investment by BPRL International BV in International BV Brasil Petroleo Limitada -- through intermediate WOS -- to 15,000 crore from the current limit of 5,000 crore. As per details, the productions from BM-SEAL-11 project is expected from 2026-27.

With this move, CCEA says that BPRL will now help in getting access to equity oil to strengthen India’s energy security, while diversify India’s crude oil supply. Indian oil companies have expressed interest in sourcing more crude oil from Brazil.

Also, the move will strengthen India’s foothold in Brazil, which will further open business avenues in neighbouring Latin American countries and strengthen the bilateral ties between the countries.

BPRL has 40 per cent Participating Interest (PI) in this concession along with National oil company of Brazil's Petrobras as the operator with 60 per cent PI. Since 2008, BPRL has been associated with exploration and development of this project in Brazil.

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Published: 28 Jul 2022, 01:55 PM IST
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