The Indian state-owned refiner Bharat Petroleum Corporation Limited (BPCL) will sign an agreement with Brazil’s Petrobras to acquire 12 million barrels of oil and improve crude oil imports during fiscal year 2027. The operation, valued at approximately US$780 million, doubles the volume agreed for 2026 and is part of the Indian government’s strategy to reduce its dependence on Russian oil.
Crude oil imports to increase by 2027
The official announcement was made in the context of the India Energy Week 2027 conference, where other strategic energy pacts with global players are also anticipated. In the case of BPCL, the deal with Petrobras strengthens the energy link between India and South America, consolidating the South American country as a key supplier of crude oil to the Indian economy.
Reduced Russian shipments following the invasion of Ukraine forced India to seek new supply routes. In response, state-owned refiners began to explore options in Latin America, Africa and the Persian Gulf. This new contract with Petrobras is evidence of a structural shift towards non-traditional suppliers in an increasingly multipolar energy environment.
The Brazilian state-owned company will provide the crude in several shipments distributed during the year, under commercial conditions not yet publicly disclosed. This agreement strengthens BPCL’s portfolio, which had already been managing similar purchases since 2026, although in smaller volumes.
During the same event, other Indian state-owned companies are expected to sign key pacts. Numaligarh Refinery Ltd (NRL) and TotalEnergies are planning a sustainable fuel plant at Paradip, with the capacity to produce 200 kilotonnes per year. In addition, Oil India Ltd and NRL plan to import liquefied natural gas (LNG) from France, while BharatPetro Resources, a unit of BPCL, is preparing an alliance with Shell to acquire international oil assets.
For Petrobras, this contract adds to its efforts to consolidate its position as a reliable exporter in the Asian market. India represents a strategic destination in its international customer portfolio, not only because of the volume of imports, but also because of its stability as a commercial partner.
The agreement with BPCL is part of a broader trend of south-south cooperation in energy matters. As Petrobras diversifies its market, BPCL strengthens its energy security, opening a new chapter in bilateral trade between Brazil and India.
Source and photo: Reuters