Indian state-owned refiner Bharat Petroleum Corporation Limited (BPCL) prepares to issue a $3-billion bond to finance its share of a major offshore oil development in Brazil, as Indian companies move to expand in international upstream to secure crude oil supplies.
BPCL, India’s second-largest state-controlled oil refiner, expects to raise the sum via several tranches and has held roadshows in London, Singapore, and Dubai to assess potential investor interest, anonymous sources with knowledge of the plan told Bloomberg on Monday.
The potential bond issue would help fund the Indian company’s $2.8-billion share of investment in the development of the SEAP-I oil and gas field offshore Brazil.
BPCL, through its wholly owned subsidiary Bharat PetroResources Limited (BPRL), has equity interests in six blocks in Brazil, the highest number of blocks overseas, and the second highest number overall behind the seven blocks it has domestically in India.
Earlier this year, BPCL signed definitive agreements to buy the remaining stake in IBV Brasil Petroleo Ltda from Videocon Energy Brazil Ltd, making the company a wholly owned subsidiary of BPRL Ventures BV, BPCL’s wholly owned overseas subsidiary.
“This strategic acquisition marks a significant milestone in strengthening BPCL’s global upstream portfolio, enabling greater operational agility and reinforcing its long-term commitment to enhancing India’s energy security through strategic international investments,” the Indian company said in July.
“The acquisition reflects BPCL’s continued focus on building a resilient and future-ready energy portfolio that supports the India’s growing energy needs while strengthening its presence in the global energy landscape.”
Bharat PetroResources holds 40% in the SEAP-I project, which is operated by Petrobras.
Brazil’s state oil major earlier this year approved the development of SEAP-I, which is expected to start producing oil in 2030 and natural gas in 2031.
Petrobras has awarded the contract for a floating production, storage, and offloading FPSO vessel to SBM Offshore. Under these contracts, SBM Offshore will design, build, and operate FPSOs for the SEAP-I and SEAP-II projects.
By Charles Kennedy for Oilprice.com
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