BPCL to Sign $780M Oil Deal with Petrobras

• BPCL signs $780M crude deal with Petrobras Brazil.
• Secures 3M barrels/month supply for Indian refineries.
• Diversifies sourcing, boosts energy security for India.

Bharat Petroleum Corporation Limited (BPCL), one of India’s leading public sector oil refiners, has signed a landmark $780 million crude oil supply agreement with Brazil’s state-owned Petrobras. The deal, announced on January 2026, secures long-term crude supplies for BPCL’s refineries and strengthens India’s energy security amid volatile global oil markets.

Under the contract, Petrobras will provide close to 3 million barrels of crude oil per month to BPCL for the first period. Extension of the contract will depend on mutual agreement. The contract is worth approximately $780 million for the volume committed and price terms. However, the contract's coverage period and pricing formula remain undisclosed. This is the largest single crude supply deal that one Indian refiner has signed with a Latin American supplier in the last few years.

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The partnership takes advantage of Petrobras strong output from Brazil's pre, salt fields which are known for their high, quality medium, to, light sweet crudes that perfectly match BPCL's refining configuration. To BPCL, this deal is a diversification of its sources of supply outside the traditional Middle East suppliers, thereby it lowering its exposure to the regional geopolitical risks and Red Sea disruptions that have affected tanker routes.

The deal is a part of India's larger initiative to set up strategic petroleum reserves, maintain feedstock stability for the increase of its refining capacity, and facilitate the energy transition goals through dependable imports. BPCL runs big refineries in Mumbai, Kochi, and Bina with a total capacity of over 35 million metric tonnes per annum, which makes having a secure supply of crude oil very important for the company's operational efficiency and profitability.

Such a collaboration is a sign of deepening economic relations between India and Brazil in the energy field, as both countries are looking at other areas of biofuels, green hydrogen, and upstream exploration. Analysts see the partnership as a good indication of Indian PSUs diversifying their long, term procurement strategies in a global oil market that is rapidly tightening.