BPCL unit's $1.6-billion investment in Brazilian oil block okayed

The Cabinet has approved an additional investment of $1.6 billion by Bharat Petro Resources Ltd (BPRL), a fully-owned unit of state-run BPCL, for the development of a Brazilian oil block.
BPRL has a 40% participating interest in the Brazilian block- BM-SEAL-11 - which is expected to start production in 2026-27. With 60% participating interest, Petrobras, the national oil company of Brazil, is the operator of the block.

BPRL had bought a stake in the project in 2008.

The decision will help in accessing equity oil to strengthen India's energy security, an official statement said.

Indian companies have expressed interest in sourcing more crude oil from Brazil, the statement said, adding that the decision to invest more in the Brazilian block will further open business avenues in neighbouring Latin American countries.

The Cabinet Committee on Economic Affairs also increased the limit of equity investment by BPCL in BPRL and the authorised share capital of BPRL from ₹15,000 crore to ₹20,000 crore, the statement said.