Indian Prime Minister Narendra Modi’s Union Cabinet has approved a memorandum of understanding (MoU) on co-operation in the oil and gas sector.
As part of the MoU, the two countries will focus on exploration and production (E&P) and liquefied natural gas (LNG) opportunities.
Both India and Brazil will also focus on research and development in the energy sector.
Indian Oil minister Dharmendra Pradhan tweeted: “India is diversifying its crude oil supply and our oil companies have expressed interest in sourcing more crude from Brazil if offered favourable commercial terms.
“We further discussed to collaborate our efforts in the field of biofuels. We are targeting to achieve 20% ethanol blending in petrol and 5% bio-diesel blending capacity by 2030.”
According to the Indian government, the two countries will encourage collaboration in oil energy and environmental issues. They will also cooperate in energy policies such as energy efficiency and energy research development.
The partnership will also focus on the expansion of regional energy infrastructure networks.
The MoU is expected to be signed later this month when Brazil’s President visits India.
Currently, India’s state-controlled ONGC Videsh has interests in two exploration blocks in Brazil, BC-10 and BM Seal-4.
India is also looking at increasing its oil imports from Brazil. This will help the country to spread its import avenues, which currently is mostly dependent on the Middle-East.