India’s largest government-owned-oil producer ONGC Videsh Ltd (OVL), is likely to invest USD 1 billion in a Brazilian offshore hydrocarbon block and raise its stake. Brazil’s Petroleo Brasileiro SA (Petrobras) currently owns a 75 per cent stake in the block, and OVL holds the remaining 25 per cent. As per the reports, the block was discovered in 2019 and is expected to start production by 2026.

Bharat Petroleum Corporation Ltd (BPCL) inked an agreement with Petrobras to import crude oil. The Indian oil companies are more focused on Latin America. Indian Oil Corporation (IOL) has also inked an agreement with Colombia’s Ecopetrol SA to procure oil.

OVL, Indian Oil Corp (IOC), and Oil India Ltd are also planning to invest jointly in the Vostok project of Russian integrated energy company Rosneft. According to the media, India has also been looking to invest in Novatek’s Arctic LNG-2 project as part of its energy security efforts.

To protect from future disruptions, the central government and companies have been endeavouring to diversify the sources of oil. Currently, India imports 85 per cent of its oil requirements from abroad and 55 per cent of all its natural gas needs.