InvestorQ : Why has the Union Cabinet approved the $1.6 billion investing by BPCL in the Brazilian joint venture? Is the divestment plans for BPCL off?
Riya Dwivedi made post

Why has the Union Cabinet approved the $1.6 billion investing by BPCL in the Brazilian joint venture? Is the divestment plans for BPCL off?

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shrinidhi Rajan answered.
3 weeks ago
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The Cabinet Committee on Economic Affairs (CCEA) has approved an additional investment of $1.6 billion by BPCL in the joint venture Brazilian oil block. This block is likely to commence production from FY27. You are right, you can say that the divestmet plan is off now since over the last 2 years, the government did try hard to sell its 52.98% stake in BPCL. However, earlier this year the government eventually shelved divestment plans for BPCL.

Now, it must be remembered that BPCL has a 40% stake in the oil block. It was floated as a joint venture participation by BPCL and Videocon but after the latter went bankrupt, BPCL took over the entire 40% ownership of the block. Petrobras of Brazil holds the other 60% and operates the block. It is likely to ensure energy security for India.

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