India’s Bharat Petroleum Corporation (BPCL) is planning to invest more than $13.54bn (Rs1tn) over the next five years to accelerate focus in new segments for sustainable growth.
The investment plan, which would be majorly made at the group level, was announced by BPCL chairman and managing director Arun Kumar Singh during the company’s 68th annual general meeting (AGM).
The state-owned firm said it would explore opportunities across biofuels, petrochemicals, gas, consumer retail, electric mobility, and digital transformation.
BPCL will allocate $4.05bn (Rs300bn) for improving petrochemical capacity and improving refining efficiencies.
It also plans to invest $2.43bn (Rs180bn) in upstream oil and gas exploration and production.
Additionally, the firm will invest $2.7bn (Rs200bn) for gas proliferation and a further $2.43bn (Rs180bn) for augmenting fuel marketing infrastructure.
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Arun Kumar Singh said: “The investment will help BPCL prepare for the future where conventional fuels and zero-carbon mobility in form of electric vehicles (EVs) and hydrogen will co-exist, while giving it the option to convert a greater degree of crude oil directly into high-value petrochemicals.”
Currently, BPCL operates refineries in Mumbai, Maharashtra; Kochi, Kerala; and Bina, Madhya Pradesh, and refining presence through its subsidiary Bharat Oman Refineries.
These refineries have a total capacity of nearly 37 million metric tonnes per annum (MMtpa).
Separately, China’s state-run offshore oil and gas major CNOOC is reportedly planning to issue a new share on the Shanghai stock exchange to raise up to $5.41bn (CNY35bn).
The proceeds will be used by the firm to fund several oil and gas projects, including the Payara oilfield in Guyana, and Lingshui 17-2 and oilfield Liuhua 11-1/4-1 in the South China Sea, reported Reuters.
The domestic share sale plan, which represents about 5.5% of the firm’s share capital, comes amid US sanctions on CNOOC.
The sanctions had forced investors to reduce investing or exit the firm.
The fundraising plan is also driven by China’s policy to encourage more domestic listing.