BPCL has launched a postal ballot seeking shareholder approval for material related-party transactions worth over ₹30,000+ Crore linked to the Mozambique LNG project, including asset restructuring and debt service guarantees.
Mumbai, June 5, 2026: State-owned oil and gas major Bharat Petroleum Corporation Limited (BPCL) has initiated a postal ballot process to seek shareholder approval for two significant related-party transactions linked to the company’s strategic investment in the Area-1 Offshore Mozambique LNG project.
The proposed transactions, together valued at approximately USD 3.21 billion (over ₹30,800 crore), are aimed at restructuring project ownership and extending financing support for one of the world’s largest liquefied natural gas (LNG) developments.
Asset Restructuring Deal Worth USD 1.29 Billion
BPCL is seeking approval for a material related-party transaction involving its step-down wholly-owned subsidiary, BPRL Ventures Mozambique BV (BVMBV). The proposal includes the transfer of Golfinho-Atum project assets into a newly created project structure comprising Moz LNG1 AssetCo Limitada and Moz LNG1 HoldCo Limitada.
The transaction, estimated at USD 1.29 billion (around ₹12,389 crore), is designed to align the Mozambique LNG project’s ownership structure with global project financing standards. Under the revised arrangement, project assets will be transferred into a dedicated asset-holding company before being consolidated under a holding entity owned by project participants.
BPCL stated that the restructuring is expected to provide regulatory, accounting, and debt-management benefits while enhancing flexibility for future project development.
BPCL Proposes Extension of USD 1.92 Billion Debt Support
The second proposal relates to the extension of BPCL’s Debt Service Undertaking (DSU) supporting project financing arrangements for the Mozambique LNG project.
The company is seeking shareholder approval to extend guarantee support of up to USD 1.92 billion (approximately ₹18,432 crore) until December 31, 2033. The DSU backs financing obligations of project borrowing entities, including Mozambique LNG1 Financing Company Ltd. and Mozambique LNG1 Co-Financing Company Lda.
The guarantee mechanism is a critical component of the project’s limited-recourse financing framework, which includes commitments from export credit agencies, commercial banks, and development finance institutions.
Strategic Importance of Mozambique LNG Investment
BPCL entered the Area-1 Offshore Mozambique block through its subsidiary Bharat PetroResources Limited (BPRL) in 2008 and currently holds a 10% participating interest in the concession.
The project is operated by TotalEnergies and includes partners such as ONGC Videsh Limited, Oil India Limited, Mitsui, ENH, and PTTEP.
The consortium took Final Investment Decision (FID) in 2019 to develop the Golfinho-Atum gas fields through two onshore LNG trains with a combined capacity of 13.12 million metric tonnes per annum (MTPA).
BPCL has scheduled the remote e-voting process from June 6, 2026, to July 5, 2026. Shareholders eligible as of June 3, 2026, can cast their votes electronically. The results of the postal ballot are expected to be announced on or before July 7, 2026.
The company’s board has recommended shareholders approve both ordinary resolutions, citing their importance in advancing the Mozambique LNG project’s financing and operational structure.