Brazilian oil company Petrobras has signed a strategic term contract with Bharat Petroleum Corporation (BPCL) for the supply of Brazilian crude oil grades.
Additionally, Petrobras has entered cooperation pacts with ONGC Videsh (OVL) and Oil India to explore oil and gas opportunities, reported the Economic Times.
These agreements were finalised during India Energy Week, underscoring Petrobras’ commitment to strengthening its position in the global energy market.
The non-binding memorandum of understanding (MOU) signed with OVL, the overseas investment arm of Oil and Natural Gas Corporation (ONGC), will focus on assessing opportunities in upstream, marketing, decarbonisation and low-carbon solutions.
“The agreement is aligned with Petrobras’ strategy to develop partnerships that allow for the sharing of risks and expertise,” OVL stated.
The contract with BPCL includes the supply of Brazilian crude oil grades. Initially valid for one year, the contract will help India diversify its crude oil sources.
BPCL has an option to procure six million barrels annually under the contract.
BPCL chairman G Krishnakumar highlighted the importance of the agreement with Petrobras in securing stable and competitive crude supplies.
“Strengthening our crude sourcing from Brazil aligns with our long-term vision of enhancing energy security for India,” he said.
BPCL, India’s second-largest state-owned oil refining and marketing company, operates refineries in Mumbai, Kochi and Bina with a combined capacity of 35.3 million tonnes per annum.
The company is also investing in sustainable initiatives including electric vehicle charging stations at 7,000 fuel stations over the next five years.
In another development, Oil India signed an MOU with Petrobras to collaborate and explore opportunities for hydrocarbon exploration in India’s deep and ultra-deep offshore regions.
This partnership aligns with India’s Hydrocarbon Exploration and Licensing Policy and the Open Acreage Licensing Policy.
