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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 (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.
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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.
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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.
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% | - |
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.
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