State-owned Bharat Petroleum Corporation (BPCL) expects to resume operations with resolution of the force majeure in its long-delayed Mozambique LNG project by July 2025, the company’s director finance, V.R.K. Gupta said on Friday. The development comes as the Indian oil and gas companies plan to expand their upstream expansion amid growing energy demand.
“In a positive development for BPCL, US Export-Import Bank, which made the largest project financing commitment of $4.7 billion approved the decision to continue its participation in the Mozambique project. This action is intended to facilitate full restart and force majeure resolution not later than by July 2025,” the company said. The project is expected to be completed by July 2028.
The project was halted back in March 2021, when the operator of the project, France-based TotalEnergies SE, declared force majeure following attacks by Islamic State terrorists. Three Indian oil companies – ONGC Videsh, BPCL, and Oil India together hold a total of 30% stake in the project. BPRL Ventures Mozambique BV, a subsidiary of BPCL holds 10% stake.
Additionally, the company which has recently announced setting up of a greenfield refinery cum petrochemical complex in Andhra Pradesh is working on a detailed feasibility report for the project and expects the Final Investment Decision to be completed by the end of December 2025. The refinery will be completed in 48 months after the FID is taken, the company said. The proposed refinery is expected to have capacity between 9 million tonnes to 12 million tonnes.
For the current financial year 2025-26, the company has laid out a capex plan of Rs 20,000 crore of which Rs 17,200 crore will be in the form of direct investment whereas the remaining would be as equity investment through its joint ventures.
For 2026-27, the company has earmarked Rs 25,000 crore as capex followed by Rs 30,000 crore in 2027-28. “All these major capex investments will go for City Gas Distribution business, petrochemicals and expansion in Mozambique and Brazil,” the company said.
Speaking on the availability of Russian crude which comes at $3 per barrel discount compared to dated Brent, the company said that the competition for the discounted crude oil has increased with countries including Syria and Turkey buying more Russian oil.
The share of Russian oil in BPCL’s imports reduced to 24% in the last quarter of FY25, down from 34% in Q3FY25. However, the company expects improvement in supplies of Russian crude in the current quarter at 30-32%.