BPCL Plans $3 Billion Bond for Brazil Oil Project Investment

Bharat Petroleum Corporation Limited (BPCL), India’s second-largest state-controlled oil refiner, is preparing to issue a $3-billion bond to finance its portion of a major offshore oil development 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 proceeds will support BPCL’s $2.8-billion investment in the SEAP-I oil and gas field, located offshore Brazil. BPCL, through its subsidiary Bharat PetroResources Limited (BPRL), holds equity interests in six blocks in Brazil, the highest number of overseas blocks for any Indian company.

Earlier this year, BPCL completed the acquisition of the remaining stake in IBV Brasil Petroleo Ltda, making it a wholly owned subsidiary. The company described the acquisition as a strategic move to strengthen its global upstream portfolio and enhance India’s energy security through international investments.

The SEAP-I project, in which BPCL holds a 40% stake, is operated by Petrobras. Production is expected to begin in 2030 for oil and 2031 for natural gas. Petrobras has also awarded a contract for a floating production, storage, and offloading (FPSO) vessel to SBM Offshore, which will design, build, and operate the vessels for the SEAP-I and SEAP-II projects.