BPCL Board Approves to Invest $121 Million for Indonesia’s Oil Block

Bharat Petroleum Corporation Ltd. (BPCL) announced that its board has approved a $121 million development plan for the Nunukan Block in Indonesia. The project will be executed through Bharat PetroResources Limited (BPRL), BPCL’s wholly-owned subsidiary, and its step-down subsidiary, BPRL Ventures Indonesia BV.

Details of the Nunukan Block Project

The Nunukan Block, located in Indonesia, holds oil and gas reserves. BPRL Ventures Indonesia BV has a 16.23% participating interest in the block, while Pertamina Hulu Energi Nunukan Inc., a subsidiary of Pertamina, is the operator. The development plan is subject to approval from the Indonesian regulator, and the investment will only proceed after meeting specified conditions.

The development plan for the Nunukan Block has been submitted to the Indonesian regulator. Once approved and conditions are met, BPCL will move forward with the project.

Joint Venture for CBG Plants

In addition to its international ventures, BPCL’s board approved a joint venture with Praj Industries Ltd. to set up compressed bio-gas (CBG) plants across India. This is part of the company’s diversification. The plan is subject to regulatory clearances and board approval from Praj Industries.

BPCL’s Financial Performance

BPCL reported its financial performance for the October-December quarter. Net profit rose 94% quarter-on-quarter (QoQ) to ₹4,649 crore, up from ₹2,397 crore in the previous quarter. Revenue increased by 10% QoQ to ₹1.13 lakh crore from ₹1.03 lakh crore. The company’s EBITDA for the quarter stood at ₹7,581 crore, marking a 67% increase from ₹4,546 crore in the September quarter. The EBITDA margin went to 6.7% from 4.4% in the preceding quarter.

Share Price 

As of 11:17 AM today, on January 23, Bharat Petroleum Corporation Ltd’s share price stands at ₹273.55, down 1.46% for the day, showing a 10.60% decline over the past six months but an 18.15% gain over the past year.

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