Petrobras Eyes Long-Term Crude Oil Supply Contracts with Indian Oil Giants

The final contract between the two parties is expected soon.

SEATTLE (Oil Monster): Three major oil companies in India- Indian Oil Corporation Ltd (IOCL), Hindustan Petroleum Corporation Ltd (HPCL), and Bharat Petroleum Corporation Ltd (BPCL) are reportedly in talks with Brazil’s Petrobras in securing long-term crude oil supply contracts. The move is part of India’s ongoing efforts to diversify its existing energy sources.

According to reports, officials from all the above three companies had visited Brazil in April to initiate talks with Petrobras on the contract, aimed to secure long-term crude oil supplies. Incidentally, BPCL has already begun testing Brazilian crude at its refineries. The final contract between the two parties is expected soon.

Earlier, IOC had signed a long-term supply contract for 1.7 million metric tonnes per annum (mmtpa) of oil with Petrobras. Also, BPCL had established a memorandum of understanding (MoU) with Petrobras in 2022. In addition, BPCL, through its subsidiary, owns stake in an ultra-deepwater hydrocarbon block in Brazil.

Although the three companies are expected to reach separate contracts with Petrobras, the negotiations are being carried out by a consortium, which is expected to boost the bargaining power. The collaborative approach may see the Indian oil companies receiving more favourable terms as well as credit lines.