BPCL signs term contract with Brazil’s Petrobras for supply of crude oil | Mint
New Delhi: State-run Bharat Petroleum Corporation Ltd (BPCL) has signed a strategic term contract with Brazil’s national oil company Petróleo Brasileiro S.A. (Petrobras) for supply of crude oil.
The contract would initially be valid for one year and can be extended by another year, BPCL said in a statement. The move is in line with the government’s focus on diversifying India’s crude oil sources and strengthen energy cooperation with Brazil. Mint earlier reported that state-run oil marketing companies (OMCs) including BPCL were in talks with Petrobras to secure guaranteed crude oil supplies.
“The contract, initially valid for one year with an option to extend for another year, will ensure a stable and reliable supply of crude oil to BPCL’s refineries, reinforcing the long-standing partnership between the two companies,” it said.
The agreement was signed by Manoj Heda, executive director, international trade and risk management, BPCL, and Claudio Romeo Schlosser, director, chief logistics, commercialization and markets officer, Petrobras. The Union minister for petroleum and natural gas Hardeep Singh Puri, BPCL chairman and managing director G. Krishnakumar, company’s finance director Vetsa Ramakrishna Gupta, Petrobras president Magda Chambriard were present on the occasion.
Diversifying crude sources
“This agreement with Petrobras marks a significant step in BPCL’s strategy to secure stable, competitive and diversified crude supplies. Strengthening our crude sourcing from Brazil aligns with our long-term vision of enhancing energy security for India. Our partnership with Petrobras also reflects our commitment to deepening global collaborations and adapting to the evolving dynamics of the energy sector,” Krishnakumar said.
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The deal underscores BPCL’s proactive approach to navigating the complex global energy landscape, ensuring the competitiveness of its crude sourcing. “With this agreement, BPCL reinforces its commitment to ensuring energy security for India, while Petrobras strengthens its position as a reliable supplier of crude oil to the Indian market,” the company said in the statement.
The term deal comes at a time when shipments from Russia, the top supplier to India, are expected to be hit due to sanctions on several Russian ships by the US.
BPCL’s refineries at Mumbai, Kochi and Bina have a combined refining capacity of around 35.3 million metric tonnes per annum (MMTPA). Its marketing infrastructure includes a network of installations, depots, fuel stations, aviation service stations and LPG distributors. Its distribution network comprises over 22,000 fuel stations, over 6,250 LPG distributorships, 525 lubes distributorships, 123 petroleum, oil, and lubricants storage locations, 54 LPG bottling plants, 63 aviation service stations, 5 lube blending plants and 4 cross-country pipelines.
Under its energy transition plans, with a focus on sustainable solutions, the company is developing an ecosystem and a roadmap to become a net zero energy company by 2040.
