On Wednesday, February 12, Petrobras signed an oil export contract with the Indian state-owned company BPCL – Bharat Petroleum Corporation Limited. The contract provides for a total sales volume of up to 6 million barrels per year and will begin in 2025.
“This contract is expected to increase India’s share of Petrobras’ oil exports. We are always looking for customers who value the quality of the oil exported by the company,” said director Claudio Schlosser.
Contracts
The contract is in the “framework” format, which grants flexibility to both parties. It is a mechanism that has proven to work in this market before. “This contract model facilitates the entire marketing process. The parties negotiate periodically, following the current market reality and seek a commercial agreement that is compatible with their alternatives. If this agreement is reached, this pre-approved contract accelerates the operation. It is a strategy to increase our customer base in this market,” explained Schlosser.
Partnership
In 2024, India was the destination for 4% of Petrobras’ oil exports. The third largest importer in the world, the country had approximately 85% of its oil demand met by imports last year. With a potential increase in its energy demand, driven by robust economic growth, India continues to be a relevant destination for Brazilian oil.
The agreement represents an important step towards strengthening commercial relations between Petrobras and the state-owned refining segment in India.
Brazil Energy Insight 
Leave a comment