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BPCL Approves $121 Million Plan for Indonesia’s Nunukan Block

Synopsis:

Bharat Petroleum Corporation Ltd has approved a $121 million development plan for the Nunukan oil and gas block in Indonesia. Shares closed at ₹277.70, down by 0.89%.

Bharat Petroleum Corporation Ltd. news today

Bharat Petroleum Corporation Ltd (BPCL) announced its board has approved a development plan for the Nunukan Block, located in Indonesia. The project, which will be carried out through its subsidiary Bharat PetroResources Limited (BPRL), involves an estimated investment of $121 million. This strategic move underscores BPCL's ongoing efforts to expand its footprint in the international oil and gas sector.

Also read: HUL Board Approves Demerger of Kwality Wall’s Ice Cream Business

BHARAT PETROLEUM CORP LT

Trade

310.05-1.65 (-0.52 %)

Updated - 30 April 2025
322.45day high
DAY HIGH
309.00day low
DAY LOW
21424437
VOLUME (BSE)

Key Takeaways

  • Investment: $121 million for developing Nunukan Block.

  • Subsidiary Involvement: Executed through BPRL and its step-down entity, BPRL Ventures Indonesia BV.

  • Participating Interest: BPRL Ventures Indonesia BV holds a 16.23% stake.

  • Block Operator: Pertamina Hulu Energi Nunukan Inc., a Pertamina subsidiary.

  • Shares Impact: Bharat Petroleum Corporation Ltd share price closed at ₹277.70, a 0.89% decline.

Also read: Laurus Labs’ US Arm Receives Form 483 from US FDA with One Observation

Nunukan Block Development

Located in Indonesia, the Nunukan Block holds significant oil and gas potential. The development plan awaits approval from the Indonesian regulator and is subject to meeting specific conditions. BPRL Ventures Indonesia BV, with its 16.23% participating interest, collaborates with Pertamina Hulu Energi Nunukan Inc., the block’s operator.

BPCL Financial Highlights

In addition to its international expansion, BPCL reported a robust performance in the December quarter, with a 94% quarter-on-quarter (QoQ) net profit growth to ₹4,649 crore. Despite this, the figure fell short of analyst expectations.

Metric

Q3 FY25

Q2 FY25

Growth

Net Profit

₹4,649 crore

₹2,397 crore

94%

Revenue

₹1.13 lakh crore

₹1.03 lakh crore

10%

EBITDA

₹7,581 crore

₹4,546 crore

67%

EBITDA Margin

6.7%

4.4%

-

Additional Developments

BPCL’s board also approved a joint venture with Praj Industries Ltd to establish Compressed Bio Gas (CBG) plants across India. This initiative aligns with BPCL's sustainability goals and diversification efforts.

BPCL’s $121 million investment in the Nunukan Block signifies a strategic step towards international energy expansion. Coupled with domestic initiatives like CBG plants, BPCL is positioning itself for sustainable and diversified growth, despite fluctuations in the Bharat Petroleum Corporation Ltd share price.

Also read: Paras Defence Signs ₹12,000 Crore MoU for Optics Park in Navi Mumbai

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Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

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