BPRL BPCLs Exploration & Production Company
Entry into Upstream:
BPCL entered the Upstream sector in 2003 with the aspirations of reasonable supply security of crude, hedging of price risks, to become a vertically integrated oil company and to add to BPCLs bottomline.
Creation of BPRL:
Considering the need for a focused approach for E&P activities and implementation of the investment plans of BPCL at a quicker pace, a wholly owned subsidiary company of BPCL, by the name Bharat PetroResources Limited (BPRL) with an authorized share capital of Rs 1000 Crores was incorporated in October 2006, with the objective of carrying out Exploration and Production activities.
BPRLs Corporate Vision:
BPRLs vision is to become a recognized player in upstream sector : This is planned to be achieved by increasing BPRLs exploration portfolio, acquiring producing fields and enhancing exploration activities etc, while making concerted efforts to become an Operator, in the near future.
BPRLs Corporate Mission:
BPRL has chosen the following Corporate Mission for itself:
- To develop core competence in Exploration and Production of oil and gas with focus on production
- To maximize wealth creation for meeting expectations of stakeholders
- To create a pool of knowledgeable and inspired employees and ensure their professional and personal growth
Till date, the company has acquired participating interests in 26 exploration blocks; in consortium with other companies. Of the blocks, 9 blocks are in India, 2 in Australia and UK, 1 each in Mozambique and East Timor and 10 in Brazil. BPRLs total acreage holding is around 86,000 sqkm of which about 73,000 sqkm is offshore acreage.
Indian Assets:
3 blocks were awarded in 2003 during the New Exploration Licensing Policy (NELP)-IV bidding round offered by the Government of India comprising 2 deep water offshore blocks, in Krishna-Godavari (KG) & Mahanadi (MN) basins and 1 onshore block in Cauvery (CY) basin. 5 blocks were awarded during the NELP VI bidding round in 2007 comprising 2 deep water offshore blocks in the KG basin, 2 onshore blocks in the CY basin and 1 onshore block in the Rajasthan (RJ) basin .
Further, 1 block was awarded in the NELP VII round of bidding in the Rajasthan basin. In this block BPRL is in Joint Operatorship with M/s HOEC.
Foreign Assets:
The first overseas onshore block was awarded to the BPCL consortium in Oman in June 2006. Subsequently, 1 offshore block in Australia and 1 offshore block in the Joint Petroleum Development Area (JPDA) between Australia and East Timor were also awarded to the BPCL consortium. Also, 2 blocks have been acquired through the Farm-in process (1 offshore block in Australia in 2006 and 1 shallow water block in the North Sea in early 2007). Further, BPRL has bid successfully for an offshore acreage in the North Sea (UK) in 2008.
BPRL and M/s Videocon Industries Limited (VIL) jointly bid successfully for the acquisition of 10 deep water exploration blocks (across 4 concessions) in offshore Brazil. These blocks were held by M/s EnCana Corporation, Canada, through their affiliate M/s EnCana Brazil Petroleo Limitada (EnCana). The Share Purchase Agreement for this acquisition was signed in September 2007 for the purchase of all shares of EnCana Brasil Petrleo Limitada, Brazil on a 50:50 basis between BPRL and VIL. The transaction was closed in September 2008, after receipt of government approvals.
In December 2008, BPRL farmed into an offshore block in Mozambique with 10% PI, and in January 2010, farmed into an offshore block in Indonesia.
All the above blocks are in various stages of Exploration. BPRL consortium has drilled 6 wells in 2009, and is planning to drill 12 wells in 2010. A discovery has been announced in the Campos basin in Brazil and also in offshore Mozambique. BPRL has partnerships with some world renowned Operators including Petrobras and Anadarko.
Special Purpose Vehicles (SPVs):
For purposes of tax optimization and to cater to its overseas ventures, BPRL has incorporated subsidiaries / SPVs in Brazil and in the Netherlands.
Organogram:
BPRL has its own board of Directors. The company is headed by a Managing Director and has a lean manpower structure, all of whom are presently drawn from BPCL.
Workstation:
BPRL has equipped itself with a state of the art Workstation for study of geoscientific data and has also engaged/ recruited geoscientists to carry out this work.