BPRL was incorporated in October 2006, as a 100% subsidiary of Bharat Petroleum Corporation Limited, to undertake upstream activities of BPCL.
As on March 31, 2022, BPCL’s investment is ₹ 7,275 crore in the equity capital of BPRL. In addition to this, the Company has given a loan of ₹ 2,190 crore to this subsidiary. BPRL has recorded a consolidated income of ₹232.04 crore and a consolidated loss of ₹ 447.86 crore for the financial year ending March 31, 2022.
BPRL has Participating Interest (PI) in eighteen blocks, of which nine are in India and nine overseas, along with equity stake in two Russian entities holding the license to four producing blocks in Russia. Five of the nine blocks in India were acquired under different rounds of New Exploration Licensing Policy (NELP), one block was awarded under Discovered Small Fields Bid Round 1 and three blocks were awarded under the Open Acreage Licensing Policy (OALP) Bid Round I. Out of nine overseas blocks, five are in Brazil, two in United Arab Emirates and one each in Mozambique and Indonesia.
The blocks of BPRL are in various stages of exploration, appraisal, development and production. The total acreage held by BPRL and its subsidiaries is around 22,000 sq. km, of which approximately 49% is offshore.
During the year 2021-22, approximately 4.3 million barrels of crude oil from the Lower Zakum Concession was lifted by BPCL Group refineries, out of BPRL’s share of equity crude oil from the Lower Zakum Concession. The Appraisal Well campaign of the existing Ruwais discovery in the overseas operatorship block Onshore Block 1 Concession in Abu Dhabi, UAE was carried out during the year 2021-22 and the testing of the appraisal wells has established the presence of hydrocarbons. The first exploration well in the unexplored areas was also spud on March 3, 2022.
In BM-SEAL-11 Concession in Brazil, the Declaration of Commerciality (DoC) has been submitted to ANP (Brazilian Regulator) in December 2021 and the concessionaires are progressing on finalizing the Field Development Plan (FDP).
In Offshore Area 1, Rovuma Basin Mozambique, while the construction activities in the 2-Train Golfinho-Atum LNG Project were progressing as per schedule, security incidents in the region led to declaration of force majeure at the beginning of the year 2021-22. The Government of Mozambique is working towards the re-establishment of peace and resolving the security situation. Mozambican military along with Joint forces from Rwanda and Southern African Development Community (SADC) continue their operations in the region. Area 1 Concessionaires remain committed to promptly restarting once the security situation is resolved in a sustainable manner.
In respect of Indian blocks, the block CY-ONN-2002/2, located in Cauvery Basin, Tamil Nadu currently has six producing wells. During the year 2021-22, BPRL’s share of production from the block was 30 thousand tonnes of oil and 12 million cubic meters of associated gas. Gas sales from the block to GAIL commenced in May 2021.
In BPRL’s Indian OALP Operated block, CB-ONHP-2017/9, located in onshore Cambay Basin, Gujarat, exploration drilling prospects have been identified and activities are planned towards the minimum work program.
The PI in respect of blocks in India are held directly by BPRL. PI in respect of blocks in Brazil, Mozambique, Indonesia and UAE and equity stake in two Russian entities are held through various step-down wholly owned subsidiaries/JVs of the wholly owned subsidiaries located in the Netherlands and Singapore.