The Cabinet Committee on Economic Affairs (CCEA) on July 27 approved an additional investment of $1,600 million (about Rs 12,000 crore) by Bharat PetroResources Ltd (BPRL), an arm of Bharat Petroleum Corporation Limited (BPCL), in a concession project in Brazil.
BPRL owns 40 percent participating interest in the Sergipe Alagoas (BM-SEAL-11) concession, while Petrobras, the national oil company of Brazil, holds the remaining 60 percent.
“The start of production from BM-SEAL-11 project is expected from 2026-27,” the CCEA said in a statement.
The CCEA also approved to increase in the limit of equity investment by BPCL in BPRL and authorised share capital of the company from Rs 15,000 crore to Rs 20,000 crore, which will be subscribed by BPCL from time to time.
The decision also included approval to increase the limit of equity investment by BPRL International BV in International BV Brasil Petroleo Limitada, through intermediate WOS, to Rs 15,000 crore from the current limit of Rs 5,000 crore.
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The CCEA said the decision would help get access to equity oil, which would strengthen India’s energy security and diversify its crude oil supply.
“Indian oil companies have expressed interest in sourcing more crude oil from Brazil,” CCEA said, adding the deal would aid in strengthening India’s foothold in Brazil, which will further open business avenues in the neighbouring Latin American countries.
The CCEA is led by Prime Minister Narendra Modi, with ministers of defence, home, finance and external affairs as its members.
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