Live Mint: Cheaper Oil May Hit BPCL’s Gas Venture

Cheap crude oil has proved to be an unlikely villain for Bharat Petroleum Corp. Ltd, (BPCL) whose biggest overseas gas venture is in danger of getting delayed by at least a year.

Starting 2019, the Mozambique liquified natural gas (LNG) terminal, where BPCL holds a 10% stake, was expected to begin drawing gas from the Rovuma basin deepwater block operated by US-based Anadarko Petroleum Corp. Its commissioning was expected to transform BPCL from a pure-play oil marketer into an integrated oil and gas player. Hopes of higher upstream revenues was one reason why BPCL shares have outperformed its peers such as Indian Oil Corp. Ltd (IOCL) and Hindustan Petroleum Corp. Ltd (HPCL) in the stock market.

However, cheaper crude has suddenly altered the equations. MORE