Key facts
- Brazil is increasing crude oil shipments to India, doubling supplies in April to 275,000 barrels per day.
- India's BPCL signed a deal with Brazil's Petrobras for 12 million barrels of crude oil over one year.
- India is exploring investment in Brazil's offshore BM-SEAL-4 block, with OVL considering a $1.17 billion investment.
- Brazil proposed a partnership for increased crude supply in exchange for Indian investment in its refining sector.
- The Indian government has placed agencies on high alert due to attacks on ships in the Gulf and potential risks to Indian maritime interests.
Brazil is prepared to significantly increase its crude oil exports to India, as New Delhi seeks alternative supply routes amid ongoing shipping disruptions in the Persian Gulf. Brazil's role as a key oil supplier to India has grown, with shipments doubling in April to 275,000 barrels per day from 137,000 bpd in March.
As part of diversification efforts, India's state-run Bharat Petroleum Corporation Limited (BPCL) secured a one-year contract in February with Brazil's state-owned Petrobras to purchase 12 million barrels of crude oil. Furthermore, India is considering a proposal for ONGC Videsh Ltd (OVL) to invest up to $1.17 billion in Brazil's offshore BM-SEAL-4 block.
Brazilian government officials have also proposed a broader strategic partnership, offering enhanced crude supplies in exchange for Indian investment in Brazil's refining sector and the sharing of India's downstream expertise. Brazil is currently the largest destination for India's upstream investments in the Americas, with Indian Public Sector Undertakings (PSUs) OVL and BPRL having collectively invested $3.5 billion in the country's upstream sector.
The Brazilian foreign ministry is actively engaged with its Indian counterpart to bolster oil exports, aligning with a wider expansion of bilateral strategic ties. These discussions encompass sectors such as defense, digital public infrastructure, critical minerals, and energy transition, alongside closer coordination within the BRICS framework.
In response to heightened tensions, the Indian government has directed its agencies, including the Ministry of External Affairs and the Indian Navy, to remain on high alert. This is to ensure timely support for Indian seafarers and protect maritime interests, following recent attacks on Indian-crewed tankers in the Gulf region.