The Indian state-owned company Bharat Petroleum Corporation Limited (BPCL) is preparing to issue bonds worth $3 billion to finance its share in the development of the SEAP-I oil field offshore Brazil. This move is part of Indian companies' efforts to expand their upstream activities internationally to secure crude oil resources.
Details of the Bond Issuance
BPCL, which is the second-largest refiner under the control of the Indian government, expects to raise this amount through several phases. The company has also held roadshows in London, Singapore, and Dubai to gauge investor interest. BPCL's investment in the development of the SEAP-I oil field amounts to $2.8 billion, which these bonds will help finance.
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SEAP-I Oil Field and Investments
BPCL has invested in six oil blocks in Brazil through its wholly-owned subsidiary, Bharat PetroResources Limited (BPRL), which is the highest number of oil blocks for an Indian company abroad. This year, BPCL has signed definitive agreements to acquire its remaining stake in IBV Brasil Petroleo Ltda from Videocon Energy Brazil Ltd., which now operates as a wholly-owned subsidiary of BPRL Ventures BV, BPCL's wholly-owned foreign subsidiary.
This strategic acquisition is a sign of BPCL's commitment to strengthening its global upstream energy portfolio and allows the company to achieve greater operational agility while continuing to secure India's energy needs through strategic international investments. Bharat PetroResources holds a 40% stake in the SEAP-I project, which is operated by Petrobras. The development of the SEAP-I field, expected to begin oil production in 2030 and natural gas production in 2031, has been approved this year by the state-owned Petrobras.
Petrobras has also awarded contracts to SBM Offshore for the design, construction, and operation of a floating production, storage, and offloading (FPSO) unit. These contracts include the SEAP-I and SEAP-II projects.
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