BPCL to Raise $3 Billion for Brazil Oil Project and Debt Refinancing

Bharat Petroleum Corporation (BPCL) is planning a $3 billion international bond sale to fund its stake in a major offshore oil project in Brazil and to refinance debt due next year. The state-owned refiner, India’s second-largest, aims to raise the funds in multiple tranches after holding investor roadshows in London, Dubai, and Singapore last month. The largest portion of the proceeds will go toward BPCL’s $2.8 billion contribution to the SEAP-I offshore development.

The investment aligns with India’s push to diversify its overseas energy supplies amid global disruptions. State-run companies like BPCL and Oil and Natural Gas Corporation are expanding investments abroad as India imports nearly 90% of its crude oil and half of its natural gas. Brazil has become India’s fifth-largest crude supplier, with imports more than doubling this year compared to 2025 levels.

South America is emerging as a key investment destination for global energy firms, including Exxon Mobil and TotalEnergies, due to its resource richness and geopolitical stability compared to the Middle East. BPCL’s subsidiary, Bharat PetroResources Ltd, holds a 40% stake in the project, operated by Petrobras. Once operational, SEAP-I is expected to produce 120,000 barrels of oil per day and process 10 million cubic meters of natural gas daily, with oil production starting in 2030 and gas exports in 2031.

The project’s final investment decision was approved earlier this year after delays in securing a floating production, storage, and offloading vessel. Discoveries in the area were declared commercially viable in 2021, and a development plan was submitted to Brazil’s oil regulator the following year.