Indian Oil Corporation Ltd. (IOCL) and Petroleo Brasileiro SA (Petrobras) of Brazil and Ecopetrol SA of Colombia have inked a long-term arrangement to provide crude oil. The purpose of doing this is to increase India’s energy security.
On September 24, Bharat Petrol Corporation Ltd. (BPCL) and Petrobras also agreed to source crude oil from countries in South America.
The agreement with IOCL was struck last week when Pankaj Jain, the petroleum secretary, was in Brazil.
According to a report, Petrobras will provide 1.7 million tonnes to IOCL annually.
The ministry of petroleum and natural gas tweeted on September 23: “Had fruitful discussions with Mr. Caio Paes de Andrade, CEO of Petrobras, regarding agreements that would benefit both parties for Brazil’s export of crude oil to India and petroleum products to Brazil. He also talked about working together in the domains of refining, biofuels, and EP.”
Additionally, the ministry tweet that during Jain’s visit, a contract inked between BPCL and Petrobras.
Tweeted by IOCL on September 27 “India’s energy security is something that #IndianOil is dedicated to enhancing! As part of our ongoing efforts to diversify our crude oil sourcing, We today signed a Term Contract in Singapore with the national oil firm of Colombia, Ecopetrol.”
The joint venture between BPCL and Petrobras, Bharat PetroResources Ltd (BRPL), received approval from the Cabinet Committee on Economic Affairs (CCEA) in July to spend additional funds in the BM-SEAL-II project in Brazil. For the project, BRPL originally allotted $1.6 billion.