The dataset are based on a proxy connection and the user management is OID driven. The production database is registered in OID.
At the backend connecting to the OID user resulted as below
SQL> connect biuser1/biuser1
ORA-28043: invalid bind credentials for DB-OID connection
ORA-28043 in this case means that the OID user used to register the database is either deleted or its password has been changed/expired.
In my case the password has expired , I tried to reset the password back to the old state but still it is ORA-28043.
So had to use DBCA and regenerate the password.
After the regeneration BI Publisher worked fine.
It would have been good that if BI Publisher would have reported ORA-28043 instead of ORA-01017