IOCL signs pacts with Petrobras, Ecopetrol for crude oil supplies: Report

IOCL's pact with Petrobras was signed during petroleum secretary Pankaj Jain's visit to Brazil last week. Petrobras will supply 1.7 million tonnes per annum to IOCL

Indian Oil Corporation Ltd (IOCL) has signed a long-term agreement with Brazil's Petroleo Brasileiro SA (Petrobras) and Colombia's Ecopetrol SA to get crude oil. This has been done to boost India's energy security, according to a report by Mint. 

On September 24, Bharat Petrol Corporation Ltd (BPCL) also signed a pact with Petrobras to source crude oil from South American nations. 

IOCL's pact was signed during petroleum secretary Pankaj Jain's visit to Brazil last week. Petrobras will supply 1.7 million tonnes per annum to IOCL, according to Mint. 

On September 23, the petroleum and natural gas ministry tweeted, "@Secretary_MoPNG had productive discussions with CEO Petrobras, Mr Caio Paes de Andrade on mutually beneficial arrangements for #CrudeOil export to India from Brazil & export of #petroleum products to Brazil. He also discussed collaboration in the refining, bio-fuels & EP sectors."

The ministry also tweeted that an agreement between BPCL and Petrobras was signed during Jain's visit. 

IOCL tweeted on September 27, "#IndianOil is committed to strengthening India’s energy security! Keeping with that goal, we signed a Term Contract with the Colombian national oil company Ecopetrol in Singapore today as a part of our continued efforts to diversify our crude oil sourcing."

In July, the Cabinet Committee on Economic Affairs (CCEA) approved the additional investment by the BPCL and Petrobras' joint company Bharat PetroResources Ltd (BRPL) to develop BM-SEAL-II project in Brazil. Originally, BRPL allocated $1.6 billion for the project.