Bharat Petroleum Corporation Limited (BPCL) anticipates a significant turnaround in its Mozambique LNG project, aiming to lift the force majeure status by July 2025. This optimistic outlook was shared by V.R.K. Gupta, BPCL’s Director of Finance, during a recent announcement. As Indian oil and gas companies gear up to meet the increasing energy demands, BPCL is set to regain momentum in its upstream ventures.

Positive Developments in Mozambique LNG Project

In a noteworthy advancement, the U.S. Export-Import Bank has reaffirmed its commitment to the Mozambique LNG project by agreeing to sustain its pivotal financing of $4.7 billion. This decision is instrumental in facilitating the project’s full restart, with expectations to resolve the force majeure status by mid-2025. The overall completion of the project is anticipated by July 2028.

• Key Stakeholders: Three Indian oil firms—ONGC Videsh, BPCL, and Oil India—collectively hold a 30% stake in this venture. Specifically, BPRL Ventures Mozambique BV, a subsidiary of BPCL, owns 10%.

BPCL’s Future Plans and Investments

In addition to the Mozambique project, BPCL has unveiled plans to establish a new greenfield refinery and petrochemical complex in Andhra Pradesh. The company is currently developing a detailed feasibility report and expects to finalize its investment decision by the end of December 2025. The refinery is projected to have a capacity ranging from 9 million tonnes to 12 million tonnes and is expected to be completed within 48 months after the investment decision.

Capital Expenditure Plans

BPCL has outlined an ambitious capital expenditure (capex) strategy for the upcoming years:

• 2025-26: ₹20,000 crore (₹17,200 crore as direct investment)
• 2026-27: ₹25,000 crore
• 2027-28: ₹30,000 crore

These investments are earmarked for expanding their City Gas Distribution business, enhancing petrochemical operations, and developing projects in Mozambique and Brazil.

Insights on Russian Crude Oil Supplies

Discussing the dynamics of Russian crude oil, BPCL noted that it has become increasingly competitive, with countries such as Syria and Turkey ramping up their purchases of discounted Russian oil, which is available at $3 per barrel cheaper than dated Brent. Recently, the share of Russian oil in BPCL’s imports dipped to 24% in the last quarter of FY25, down from 34% in the previous quarter. However, BPCL anticipates a recovery in Russian crude supplies, projecting an increase to 30-32% in the current quarter.

Financial Performance Overview

In its financial results, BPCL reported an 8% decline in consolidated net profit for the last quarter of FY 2024-25, amounting to ₹4,391.83 crore, compared to ₹4,789.57 crore during the same period last year. This dip can be attributed to underwhelming refining margins and LPG sales challenges. On a positive note, the net profit showed a 15.4% increase sequentially from ₹3,805.94 crore in Q3 FY25.

With BPCL’s strategic plans and responses to market dynamics, the company is poised to navigate the evolving energy landscape effectively.