Indian State Firm BPCL Readies $3-Billion Bond to Fund Brazil oil Project
State-owned Bharat Petroleum Corporation Ltd (BPCL) is preparing a roughly $3 billion bond offering to fund its share of a major offshore oil development in Brazil, sources told Bloomberg. The company has run investor roadshows in London, Singapore and Dubai and plans to raise the amount across several tranches to finance its stake in the SEAP-I project.
Why It Matters
The planned bond would bankroll BPCL’s reported $2.8 billion share of the SEAP-I development, marking a significant outbound upstream investment as Indian refiners expand overseas to secure long-term crude supplies. Financing such projects through international debt markets highlights how national oil firms are funding cross-border resource development.
Key Facts
- Issuer: Bharat Petroleum Corporation Limited (BPCL)
- Planned bond size: About $3 billion
- Use of proceeds: To fund BPCL's share of the SEAP-I offshore oil and gas development in Brazil (roughly $2.8 billion)
- Fundraising approach: To be raised in several tranches; roadshows held in London, Singapore and Dubai (per unnamed Bloomberg sources)
- BPCL subsidiary: Bharat PetroResources Limited (BPRL) is BPCL's wholly owned upstream arm
Bharat Petroleum Corporation Ltd (BPCL), the second-largest state-controlled refiner in India, is lining up a roughly $3 billion bond issuance to finance its investment in a large offshore development in Brazil, people familiar with the plan told Bloomberg. The company is reportedly planning to raise the proceeds in multiple tranches and has conducted investor roadshows in London, Singapore and Dubai to gauge demand. The bond would help cover BPCL’s approximately $2.8 billion share of investment in the SEAP-I oil and gas field. BPCL holds its overseas upstream interests through Bharat PetroResources Limited (BPRL), and BPRL is the entity that owns a 40% stake in the SEAP-I project. Petrobras is the operator of the field. SEAP-I has been approved for development by Petrobras and is scheduled to begin oil production in 2030 and natural gas production in 2031. Contracts for a floating production, storage and offloading (FPSO) vessel for the SEAP-I and neighbouring SEAP-II projects have been awarded to SBM Offshore, which will design, build and operate the units. Earlier this year BPCL completed an acquisition to make IBV Brasil Petroleo Ltda a wholly owned subsidiary of BPRL Ventures BV, the company said in July, a move the refiner described as strengthening its global upstream portfolio and supporting India’s energy security through international investment.
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