New Delhi: Bharat Petroleum Corp. Ltd. (BPCL) has acquired the rights to market liquid natural gas (LNG) from Mozambique’s long -term project, where it has a 10% stake, with the full development now resuming as security improves. Sanjay Khanna, chairman and managing director of the state -run company’s annual general meeting, said the project, jointly owned by three Indian public sector enterprises (PSUs) with a joint 30%stake, will increase BPCL’s upstream presence. “While safety issues have delayed the project, conditions have now improved, and the development of the full scale is expected to resume soon,” Khanna said. “Once in effect, the Two Train LNG project will increase our upstream presence and support the energy transition. We have already secured LNG marketing rights in accordance with our participating interest of 10%.” The chairman described the Mozambique project as “a world-class gas asset with nearly 70 billion cubic foot recoverable resources”. Ongc Videsh Ltd owns 16%, BPRL Ventures Mozambique BV – a BPCL subsidiary – has 10%and Oil India Ltd 4%. Total E&P Mozambique Area 1 Limitada, a subsidiary of total energy, owns 26.5% in the plant and is its operator. Operations at the Offshore Area 1 project in the coastal town of Palma were suspended in April 2021 following attacks by Islamic State terrorists. The chairman said that BPCL’s upstream portfolio in Brazil is also progressing, with BM-Seal-11 moving to the tender phase for the floating production and download vessel (FPSO) and other long leading items. “This is an important step towards the development of this strategic asset. With our Nunukan asset in Indonesia, the plan of development (POD) has received regulatory approval, which paves the way for the development of the project,” he added. BPCL entered the upstream sector in 2003 with the aim of providing partial supply protection of crude and hedging of price risks and becoming a vertically integrated oil company. The subsidiary BPRL was recorded in 2006 to carry out exploration and production activities. BPRL has participating interest (PI) in 15 blocks, with eight blocks in India and seven overseas. BPRL has equity interest in two Russian entities, which have licenses for four blocks in Russia. While BPRL is directly participating interest in domestic blocks, the interests regarding blocks in Brazil, Mozambique, Indonesia, the United Arab Emirates and stock interests in Russian entities are held by the separate subsidiaries or joint ventures of the whole owned subsidiary in the Netherlands and Singapore. The chairman said the chairman that the fiscal year 2025 (FY25) is characterized by increased volatility and uncertainty, powered by continuous geopolitical conflicts, increasing protectionism and the shift of trade policies, including the imposition of rates by large economies. “These disruptions have tested the resilience of world markets and challenged conventional growth courses. Yet there are signs of cautious optimism in the midst of these wind winds,” he said. “Global growth projections for 2025 were revised upwards-from 2.8% to 3.0%-reflecting the performance of stronger than expected performance in large economies, a backlash in service trading and continued fiscal support in certain regions.” Khanna said the global oil sector is working on a fundamental shift and structural changes redefine both demand and supply dynamics, as the world transitions to cleaner energy and diversified fuel sources. “By 2030, the demand for global oil is expected to grow by 2.5 million barrels per day before the plateau gets flat at the end of the decade at about 105.5 million barrels,” he said. “On the supply side, the oil production cut is the oil production cutting lanes over the forecast period of 2024-30. Worldwide, as the transport and power generation sector continue to diversify to alternative fuel, the petrochemical industry becomes the dominant source of global growth in oil demand,” Khanna said. At the diversification efforts of BPCL, he said the company’s ‘Project Aspires’ would strengthen its core businesses in refinement, marketing and upstream operations with a sharper execution while planning to petrochemicals, renewable, green hydrogen, biofuels and gas. He also said that the recent amendment of the Ailfields (Regulation and Development) BPCL Act will unlock new surfaces and improve the restoration of its existing fields. This will create opportunities for the business to pursue selective, high-potential investments in India’s sedimentary sinks by BPRL.
Mozambique LNG -Project again on track as security improves, gets BPCL marketing rights
