This is part of a wider energy import diversification strategy, but if pursued well, this can turn into an energy stakeholder strategy as well.
As of now, India is looking to find suppliers for its own consumption and also to export refined oil. Going forward, the strategy should be to strengthen and deepen its presence and become a partner in the supply of crude oil.
India is already building a Latin American resource corridor spanning oil, copper, critical minerals and refining feedstock, and hopefully, eventually, we move towards upstream ownership.
This is a significant one!!
The important figure is BPCL's 40% economic exposure.
SEAP is essentially becoming an India–Brazil energy cluster.
In SEAP-I Petrobras hold 60% equity while BPCL/BPRL holds 40% equity and in nearby SEAP-II, India's ONGC Videsh holds 25% of BM-SEAL-4, alongside Petrobras's 75%.
So India isn't making a small portfolio investment here. Two Indian state-owned energy companies are participating in the creation of an entirely new Brazilian deepwater petroleum province.
So, here is the barrel worth :
SEAP-I = 120,000 bpd total; BPCL exposure ≈ 48,000 bpd.
SEAP-II total: 120,000 barrels/day; ONGC Videsh≈30,000 bpd
The upstream ownership of India is significantly rising abroad. 🥳