BPCL, Petrobras, Foresight ink 3-way pact

BPCL has signed memorandum of understanding with Petroleo Brasileiro SA (Petrobras) and Foresight Oil Ltd for cooperation in upstream, midstream and downstream activities.

For the marketing hydrocarbons in domestic and international markets, BPCL has entered into an agreement with MMTC, major international trading company.

"With Petrobras and Foresight, BPCL will bid for certain oil and gas blocks offered by government of India under the NELP-VI round. The joint venture of the three companies will find other opportunities in India and abroad," company official said.

"BPCL has the expertise for operating in midstream and downstream of oil and gas sector. Also, the company is very keen to venture into upstream activities "�- exploration and production of oil and gas," he added.

Petrobras has the knowledge and capability for international exploration of oil and gas, especially in the field of deep water drilling. They have several deep water oil and gas producing fields in Brazil.

Foresight possesses unique knowledge, skill and technical expertise concerning offshore exploration, drilling and shipping. The areas of cooperation include exploration and production in India, Brazil and other countries. If necessary, they will form a consortium by including other companies.

Further, the MoU covers cooperation in the areas of midstream and downstream of oil and gas sector such as setting up of gas distribution network for domestic and industrial consumers, establishing compressed natural gas (CNG) dispensing facilities, blending and marketing of lubricants, operation and maintenance of refining and transportation and marketing of fuels. Besides, the exchange of technology and training of human resource development activities are also objectives of the MoU.

MMTC and BPCL are engaged in refining and marketing of petroleum products in domestic and international markets. Under the MoU, BPCL will associate with MMTC in the marketing of liquefied natural gas (LNG), bitumen, furnace oil, parafin wax and base oil.

Both companies are planning to expand business through the sale of allied products such as methanol and ethanol. MMTC, with an annual turnover of Rs 15,000 crore, has an operational outfit in Singapore.