Bharat Petroleum Corporation Limited (BPCL) is preparing to raise up to $3 billion through an international bond sale to fund its investment in a major offshore oil project in Brazil and refinance debt due next year. The proposed bond issue is expected to be raised in multiple tranches. BPCL has reportedly conducted investor roadshows in London, Dubai and Singapore to assess demand.
The largest portion of the proceeds is expected to finance BPCL’s $2.8 billion contribution to the SEAP-I offshore development in Brazil. The project is located within the BM-SEAL-11 concession and is operated by Brazil’s state-controlled oil company Petrobras. BPCL’s subsidiary Bharat PetroResources Limited has a 40% participating interest in the concession.
The SEAP-I project is planned to use an FPSO with capacity to produce 120,000 barrels of oil or condensate per day and process 10 million cubic metres of natural gas daily. Oil production is targeted for 2030, with gas exports expected to begin the following year.
BPCL’s investment comes as India seeks to diversify its crude oil sources and reduce exposure to geopolitical disruptions affecting traditional supply routes. India imports almost 90% of its crude oil, making overseas energy investments an important part of its long-term energy security strategy.
The Brazil project also strengthens BPCL’s overseas upstream portfolio. The company’s unit has interests in multiple blocks in Brazil, making the country an important part of its international oil and gas strategy.
BPCL’s proposed bond sale highlights the growing role of international financing in funding large overseas energy projects as Indian state-owned companies look to secure long-term crude supplies and expand their presence in global oil and gas assets.
