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Bharat Petroleum Corporation Limited (BPCL), India's second-largest state refiner, has announced plans to invest $121m to develop the Nunukan oil and gas (O&G) block in Indonesia, according to a company exchange filing.
The investment underscores BPCL's international expansion efforts and the strengthening of energy ties between India and Indonesia.
The company's exploration unit, Bharat PetroResources, holds a 16.23% stake in the Nunukan block, which is operated by Indonesia's national oil company, Pertamina.
BPCL is currently seeking approvals from Indonesian regulators to move forward with the block's development.
In addition to its international ventures, BPCL reported a 37% increase in its December quarter profit, which was lower than expected, at approximately Rs46.5bn, reported Reuters.
Despite a maintenance shutdown, the company's three refineries operated at an average 107% capacity during the quarter.
However, BPCL's third-quarter profit was impacted by lower marketing margins and losses incurred from the sale of liquefied petroleum gas (LPG).
The revenue loss on LPG sales, which were below market rates, amounted to around Rs72.29bn.
BPCL chairman G. Krishnakumar said: "The government has supported us in the past on LPG under-recovery, and we are confident it will do so again this year."
Earlier this month, BPCL achieved financial closure for its Bina Refinery expansion and petrochemical project by finalising a loan agreement worth Rs318bn with the support of a consortium led by the State Bank of India.
The project is aligned with India's objectives to promote industrial growth, improve infrastructure and enhance energy security.
Also in December 2024, BPCL selected Andhra Pradesh for a new greenfield oil refinery and petrochemical complex, potentially India’s last such project as the country moves towards net-zero emissions.
The refinery is expected to have a capacity of at least nine million tonnes (180,000 barrels per day). Pre-project activities, including land acquisition and feasibility studies, are under way.
"Bharat Petroleum to invest $121m in Nunukan O&G block in Indonesia" was originally created and published by Offshore Technology, a GlobalData owned brand.
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