BPCL charts out Rs 1.7 trillion capex plan over five years

Presently, BPCL has an installed capacity of 64 megawatts (MW) of renewable energy and a further 190 MW is under construction.

State-owned Bharat Petroleum has set a capital expenditure target of Rs 1.7 trillion over a period of five years with majority of it allocated to the refinery and petchem segment, the company’s chairman and managing director G Krishnakumar said on Friday.

Of the total capex, the company has earmarked Rs 75,000 crore for refineries and petchem projects, Rs 8,000 crore for pipeline projects, and more than Rs 20,000 crore for its marketing business.

“We also earmarked investments of Rs 32,000 crore for upstream production mainly in Mozambique. We will invest about Rs 25,000 crore on the gas business and another Rs 10,000 crore on the green energy segment,” the chairman said on a call with investors.

BPCL aims to expand its refining capacity to 45 million tonnes per annum by FY29.

“Our marketing strategy continues to be focused on strengthening our marketing infrastructure, which includes augmenting a network of 22,000 outlets with an additional 4,000 new outlets
by FY29.”

It also plans to add 300 new CNG (compressed natural gas) stations in the financial year 2024-25. The company presently has 2,034 CNG stations in the country.

For the current financial year 2024-25, the company has targeted a capex of `15,000-16,000 crore with a capital infusion of `2,000-2,500 crore in its wholly-owned subsidiary Bharat PetroResources and `7,000 crore earmarked for the refinery segment.

The peak capex spending will happen from FY27-FY28 onwards, the company said. BPCL is also expecting a resumption in its exploration activity in Mozambique on the back of an improved security situation there.

It also expects its onshore oil and gas block in Abu Dhabi to move to the development phase shortly. BPCL’s exploration and production subsidiary, BPRL, in August 2008, had bought a 10% stake in the area-1 offshore of the Rovuma block from US energy major Anadarko Petroleum.

The 12.88 million tonne per annum (mtpa) Mozambique LNG project has been under force majeure since April 2021 after the security situation worsened in the  coastal town of Palma in Cabo Delgado province on the back of attacks by Islamic State terrorists.

Krishnakumar noted that discounts on crude oil sourced from Russia has declined to $3-6 per barrel from earlier higher levels of $8-10 per barrel but expects moderate discounts from the country to continue.

“There may be some delay in delivery of Russian crude due to the sanctions on some vessels and payment issues but the supply is maintained,” the company said.

On the renewable energy front, it aims to add 10 gigawatt (GW) of renewable energy capacity, including solar, wind and green hydrogen by 2040.

“We aim to build 10 GW of renewable energy portfolio through organic and inorganic acquisition of operating assets by 2040,” Krishnakumar said.

Presently, BPCL has an installed capacity of 64 megawatts (MW) of renewable energy and a further 190 MW is under construction.


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