State-owned Bharat Petroleum Corporation Ltd (BPCL) on Wednesday (January 22) announced that its board of directors has approved the submission of a plan to the Indonesian regulator for developing the Nunukan block’s oil and gas reserves.

The proposed plan, once approved and subject to meeting specified conditions, will involve an estimated investment of $121 million.

“…we wish to inform you that the Board of Directors of Bharat Petroleum Corporation Limited at its meeting held on 22nd January 2025 has approved the submission of the development plan to the Indonesian Regulator for the development of Nunukan block for oil and gas reserves. Once the development plan is approved by the regulator and various conditions/terms are met, an estimated investment of $121 million will be incurred,” BPCL said in a regulatory filing.

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The project will be executed through Bharat PetroResources Limited (BPRL), BPCL’s wholly-owned subsidiary. BPRL’s step-down subsidiary, BPRL Ventures Indonesia BV, holds a 16.23% participating interest in the block. The operator of the block is Pertamina Hulu Energi Nunukan Inc, a subsidiary of Indonesia’s national oil company, Pertamina.

Further, BPCL announced that its Board of Directors has approved the formation of a joint venture with Praj Industries Ltd to establish Compressed Bio Gas (CBG) plants across India. The initiative is subject to regulatory approvals, including clearance from the Department of Investment and Public Asset Management (DIPAM) and board approval from Praj Industries.

BPCL’s net profit for the October-December period rose by 94% quarter-on-quarter (QoQ) to ₹4,649 crore from ₹2,397 crore, but was lower than CNBC-TV18’s poll estimate of ₹4,977 crore. For the December quarter, revenue rose 10% QoQ to ₹1.13 lakh crore compared to ₹1.03 lakh crore in the September quarter.

Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 67% to ₹7,581 crore from ₹4,546 crore. The EBITDA margin for the quarter also climbed to 6.7% from 4.4% last quarter but was again lower than the 7.4% projected by the CNBC-TV18 poll.

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Shares of Bharat Petroleum Corporation Ltd ended at ₹277.70, down by ₹2.50, or 0.89%, on the BSE.