<p>India's state-run Bharat Petroleum Corp said it has signed a preliminary agreement with Brazil's national oil company Petrobras to help it diversify its crude oil sourcing.</p>.<p>Indian state refiners rarely buy Brazilian oil. The Memorandum of Understanding (MoU) was signed by BPCL Chairman Arun Kumar Singh and Petrobras CEO Caio Paes de Andrade, BPCL said in a statement on Saturday.</p>.<p><strong>Also Read | <a href="https://www.deccanherald.com/business/business-news/oil-prices-edge-down-recession-fears-back-in-focus-1147529.html" target="_blank">Oil prices edge down, recession fears back in focus</a></strong></p>.<p>The MoU will help the company to explore sourcing of crude oil through long term contracts "especially considering the current geopolitical situations," it added.</p>.<p>India recently allowed BPCL to invest $1.6 billion for developing an ultra-deep water hydrocarbon block in Brazil. The block is majority owned and operated by Petrobras.</p>.<p>Singh said: "Strengthening India's foothold in Brazil will further open business avenues in neighboring Latin American countries."</p>.<p>BPCL said the field development plan and final investment decision for the BM-SEAL-11 block is expected to be declared soon. Oil production from the block is expected from 2026/27.</p>.<p>BPCL is the second largest fuel retailer in India and operates three refineries in the country with a combined capacity of 706,000 barrels per day (bpd).</p>
<p>India's state-run Bharat Petroleum Corp said it has signed a preliminary agreement with Brazil's national oil company Petrobras to help it diversify its crude oil sourcing.</p>.<p>Indian state refiners rarely buy Brazilian oil. The Memorandum of Understanding (MoU) was signed by BPCL Chairman Arun Kumar Singh and Petrobras CEO Caio Paes de Andrade, BPCL said in a statement on Saturday.</p>.<p><strong>Also Read | <a href="https://www.deccanherald.com/business/business-news/oil-prices-edge-down-recession-fears-back-in-focus-1147529.html" target="_blank">Oil prices edge down, recession fears back in focus</a></strong></p>.<p>The MoU will help the company to explore sourcing of crude oil through long term contracts "especially considering the current geopolitical situations," it added.</p>.<p>India recently allowed BPCL to invest $1.6 billion for developing an ultra-deep water hydrocarbon block in Brazil. The block is majority owned and operated by Petrobras.</p>.<p>Singh said: "Strengthening India's foothold in Brazil will further open business avenues in neighboring Latin American countries."</p>.<p>BPCL said the field development plan and final investment decision for the BM-SEAL-11 block is expected to be declared soon. Oil production from the block is expected from 2026/27.</p>.<p>BPCL is the second largest fuel retailer in India and operates three refineries in the country with a combined capacity of 706,000 barrels per day (bpd).</p>