IEW 2025: India's BPCL signs crude oil import deal with Brazil's Petrobras

Bharat Petroleum Corp. Ltd. has signed an optional crude import deal with Petrobras, under which the Indian state-run refiner would explore the possibility of importing incremental barrels from the Brazilian company in 2025-26 (April-March), BPCL officials said Feb. 12 at the India Energy Week conference in New Delhi.

The move would help the Indian refiner ensure cargo supply in case geopolitical turbulence leads to supply disruptions, the officials said.

"This milestone strengthens India's energy security, enhances BPCL's crude diversification and deepens ties with Brazil," BPCL said.

Company officials said optional contracts typically allow significant flexibility regarding volumes and pricing.

"We have entered into an agreement, but this is a non-committal agreement regarding the final volume," a company official said.

Addressing supply gaps

Crude supplies from Russia to India could face some challenges due to higher shipping costs from the new set of sanctions aimed at Moscow, but the country's crude diversification strategy would address any supply gaps, keeping refiners well-supplied, Gurmeet Singh, director general of the Federation of Indian Petroleum Industry, told S&P Global Commodity Insights.

Singh said there was no disruption to the ships already in transit, and India had worked out its alternative strategy to seek replacement barrels from other supplying regions, depending on how the geopolitical situation evolves.