Key facts
- BPCL is preparing to issue a $3 billion bond to fund its share of a Brazil oil project.
- The bond will finance BPCL's investment in the SEAP-I oil and gas field offshore Brazil.
- BPCL's share of the SEAP-I investment is $2.8 billion.
- The SEAP-I project is expected to start producing oil in 2030 and natural gas in 2031.
- Bharat PetroResources holds a 40% stake in the SEAP-I project, operated by Petrobras.
State-owned refiner Bharat Petroleum Corporation Limited (BPCL) is preparing to issue a $3 billion bond to finance its share of a significant offshore oil and gas development in Brazil. This move is part of a broader strategy by Indian companies to expand their international upstream operations and secure crude oil supplies.
BPCL, India's second-largest state-controlled refiner, is planning to raise the funds through several tranches and has already conducted roadshows in London, Singapore, and Dubai to gauge investor interest, according to anonymous sources familiar with the matter. The bond issuance will specifically support BPCL's $2.8 billion investment in the SEAP-I oil and gas field located offshore Brazil.
Through its wholly owned subsidiary Bharat PetroResources Limited (BPRL), BPCL holds equity interests in six blocks in Brazil, marking its largest overseas acreage. Earlier this year, BPCL finalized the acquisition of the remaining stake in IBV Brasil Petroleo Ltda, making it a wholly owned subsidiary of BPRL Ventures BV, BPCL's overseas arm. BPCL stated that this acquisition strengthens its global upstream portfolio and commitment to India's energy security.
Bharat PetroResources currently holds a 40% stake in the SEAP-I project, which is operated by Brazil's state oil major Petrobras. Petrobras approved the development of SEAP-I earlier this year, with production expected to commence in 2030 for oil and 2031 for natural gas. SBM Offshore has been awarded the contract to design, build, and operate floating production, storage, and offloading (FPSO) vessels for both the SEAP-I and SEAP-II projects.