Bharat Petroleum Corporation Ltd (BPCL) to invest an additional $1.8 billion in its Mozambique gas project over the next two years, taking its total investment, including exploration, to $4.5–4.6 billion. A senior company executive confirmed the investment plan as BPCL advances the project to strengthen its upstream portfolio and secure long-term natural gas supplies. As of September 2026, the project was 47% complete, with gas production expected to begin by mid-2028. “We are expecting gas production by mid-2028,” said V. R. K. Gupta, Director (Finance), BPCL.
BPCL Advances Project Development and Financing
BPCL has already invested approximately $2.8 billion in the Mozambique project. A consortium of eight to nine lenders is financing the development, with interest rates ranging from 6% to 9%, depending on the lender and financing terms. The investment represents a significant step in BPCL’s efforts to expand its overseas energy assets and diversify its natural gas supply sources.
Company Targets Marketing of One Million Tons of Gas
BPCL has signed a sale and purchase agreement to bring one million tons per annum (mtpa) of natural gas from Mozambique to India. The company has also started marketing these volumes to prospective customers. According to Gupta, BPCL expects to complete marketing agreements for the entire 1 mtpa over the next two to three quarters. The first phase of the project will include two liquefaction trains with a combined capacity of 13 mtpa. BPCL holds a 10% stake in the project, corresponding to an expected entitlement of approximately 1.3 mtpa from the initial phase. The development could expand through additional liquefaction trains, depending on the performance and outcome of the first phase. With further expansion, BPCL’s share of gas production could increase to 4.2–4.5 mtpa.
BPCL’s Brazil Project Progresses as Scheduled
In addition to its Mozambique investment, BPCL is pursuing an upstream oil and gas project in Brazil. The company’s BM-C-11 project is progressing as scheduled following the award of a tender for a floating production, storage and offloading (FPSO) vessel in mid-2026. This development supports BPCL’s broader strategy of expanding its international exploration and production portfolio.
Capital Expenditure Target Remains on Track
BPCL continues to advance its broader capital expenditure programme, with a target of ₹25,000 crore for the current financial year, FY2026–27. As reported by clubofmozambique, the company spent ₹13,749 crore during the first half of FY27, including ₹9,300 crore in the September quarter. Depending on project progress, total capital expenditure could slightly exceed the annual target, Gupta said.
