Oil prices rose on Thursday to their highest since late 2014.
The drilling at the Amlan Kathla block will be conducted in partnership with Algerian oil and gas firm Sonatrach.
The rebound has come from project spending and a recovering consumer sector.
That is down from May sales of $4-$4.50 per barrel.
A cargo loading on June 24-30 was sold via tender at a premium close to $4 a barrel to Dubai.
BPCL could become the second Indian state refiner after Indian Oil Corp to open a Singapore trading outpost.
Joint OPEC-Non-OPEC Ministerial Monitoring Committee will be held later this week in Saudi Arabia.
Saudi Arabia's crude oil exports in Feb rose to 7.251 million barrels per day from 7.170 million bpd in Jan.
Oil prices extended gains on Wednesday.
Deal signed to install added facilities for a major gas processing plant in Saudi Arabia