Bharat Petroleum Inks Pact With Brazilis Petrobras To Diversify Crude Oil Sourcing For 2025-26

State-run Bharat Petroleum Corporation Ltd. (BPCL) has signed a strategic term contract with Petrobras, Brazil’s national oil company, for optional crude imports of 6 million barrels in the 2025-26 financial year, Chairman G. Krishnakumar announced on Wednesday (February 12) at the India Energy Week conference.

This significant development marks a major milestone in the ongoing efforts to diversify India's crude oil sources and strengthen energy cooperation with Brazil, BPCL said.

BPCL imports a substantial volume of crude oil, which is processed into fuels such as petrol and diesel at its three refineries in Mumbai, Bina (Madhya Pradesh), and Kochi (Kerala). While a majority of its crude supply currently comes from West Asian nations like Iraq and Saudi Arabia, BPCL is actively working to reduce dependency on any single region.

"We are diversifying our crude sources and currently process oil from 21 countries. Our goal is to mitigate geopolitical risks," Krishnakumar said.

The contract, initially valid for one year with an option to extend for another year, will ensure a stable and reliable supply of Brazilian crude oil to BPCL’s refineries, reinforcing the long-standing partnership between the two companies, it added.

As India’s second-largest oil marketing company—with domestic sales of approximately 51 million metric tons (MMT) and a market share of 25.37 per cent in FY24— the latest agreement aligns with BPCL’s broader strategy of long-term backward integration.

The company, which holds the third-largest refining capacity in India (accounting for about 14 per cent of the country's total refining capacity in 2024), has forged alliances with over a dozen global energy players, including TotalEnergies, ONGC, Rosneft, Mitsui, OIL, BP, ADNOC, and Petrobras.