In a landmark event to diversify crude oil sourcing for energy security in India, Bharat Petroleum Corporation Limited (BPCL), a “Maharatna” and Fortune Global 500 company, signed a Memorandum of Understanding (MoU) with Brazilian oil business Petrobras on Saturday.

The signing of the MOU will boost future crude oil trade links between the two firms and allow BPCL to investigate prospective crude import options in the long term, especially given the current geopolitical environment. The MoU was signed in Brazil by Arun Kumar Singh, Chairman and Managing Director of BPCL, and Caio Paes de Andrade, CEO of Petrobras, in the presence of Pankaj Jain, Secretary of MoPNG, the Indian Ambassador to Brazil, and other MoPNG officials.


Previously, on September 16, Mint reported that India was expected to ink long-term contracts to purchase at least 2 million tonnes (mt) of oil from Brazil’s Petroleo Brasileiro SA (Petrobras) and 1 million tonnes (mt) from Columbia’s state-run Ecopetrol SA. Arun Kumar Singh, C&MD of BPCL, commented on the development, saying, “We are pleased to announce that our organization is taking another step toward improving our country’s energy security. This collaboration with Petrobas should help us achieve our objectives.

Part of Diversification

“The latest decision by Prime Minister Narendra Modi’s cabinet to invest in Brazil would help diversify India’s crude oil supplies and is a move to obtain equity oil from abroad. “Strengthening India’s presence in Brazil will offer up new commercial opportunities in nearby Latin American countries,” he continued. “BPCL holds an upstream share in an ultra-deepwater hydrocarbon block in Brazil, owned and operated by Petrobras, through its fully owned subsidiary, Bharat PetroResources Limited (BPR),” the firm said in a statement.

The final investment decision and field development plan are scheduled to be announced soon. For the first time, India will sign a long-term supply agreement with Petrobras, one of the few global oil companies that are boosting output.

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