BPCL Plans $3-Billion Bond for Brazil Oil Project Expansion

Bharat Petroleum Corporation Limited (BPCL), India’s second-largest state-owned refiner, is preparing to issue a $3-billion bond to fund its share of an offshore oil development project in Brazil. The company plans to raise the funds through multiple tranches and has conducted roadshows in London, Singapore, and Dubai to gauge investor interest, according to anonymous sources cited by Bloomberg.

The bond will finance BPCL’s $2.8-billion investment in the SEAP-I oil and gas field, a project expected to begin oil production in 2030 and natural gas production in 2031. BPCL holds a 40% equity stake in SEAP-I, which is operated by Brazil’s state-owned oil giant Petrobras.

BPCL’s expansion in Brazil aligns with India’s strategy to secure long-term crude oil supplies by investing in international upstream projects. The company, through its subsidiary Bharat PetroResources Limited (BPRL), already has equity interests in six blocks in Brazil, the highest number of blocks overseas. Earlier this year, BPCL acquired the remaining stake in IBV Brasil Petroleo Ltda, further strengthening its presence in the region.

Petrobras has awarded contracts for floating production, storage, and offloading (FPSO) vessels to SBM Offshore, which will design, build, and operate the facilities for the SEAP-I and SEAP-II projects. BPCL described the acquisition as a ‘significant milestone’ in enhancing India’s energy security and expanding its global upstream portfolio.