BPCL To Invest Rs 25,000 Crore In Global Energy Projects, Including Key Venture In Mozambique

State-run Bharat Petroleum Corp Ltd (BPCL) is set to invest Rs 25,000 crore (approximately $2.9 billion) for its exploration and production projects in Mozambique and Brazil over the coming three years, according to its chairman and managing director, G Krishnakumar.`112w

The Mozambique project of BPCL was halted in March 2021 after TotalEnergies SE, the operator, invoked force majeure due to Islamic State-linked insurgents attacks on civilians in Mozambique's northern Cabo Delgado province where the liquified natural gas (LNG) project is being built.

The Mozambique LNG project is operated by TotalEnergies, holding a 26.5 per cent stake.

Other participants include ENH Rovuma Area Um, SA (15 per cent), Mitsui E&P Mozambique Area1 (20 per cent), ONGC Videsh (10 per cent), Beas Rovuma Energy Mozambique (10 per cent), BPRL Ventures Mozambique BV (10 per cent), and PTTEP Mozambique Area 1 (8.5 per cent).

"The force majeure is expected to be lifted in the fourth quarter of this fiscal. We had a meeting with TotalEnergies and they gave us a good sign. We are sitting on a huge potential," Krishnakumar was quoted as saying by Economic Times.

He added that BPCL is hopeful of starting work on the project in 2025.

The Mozambique project boasts reserves totaling 64 trillion cubic feet (TCF) and a production capacity of 13 million tonnes per annum (mtpa). BPCL has already invested approximately $2 billion in the venture.

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