Post by : Meena Ariff

Indian Oil Corporation (IOC) and Bharat Petroleum Corporation Limited (BPCL) have announced significant new oil finds in an onshore block in Abu Dhabi, further enhancing their overseas exploration portfolio and contributing to India’s energy security strategy.

Their joint venture, Urja Bharat Pte Ltd (UBPL)—a special purpose vehicle equally owned by IOC and BPCL’s exploration arm Bharat PetroResources Ltd (BPRL)—made its first oil discovery in early 2024 at the XN-76 exploratory well, located in Onshore Block 1. This block was awarded to UBPL in March 2019.

Following this, UBPL has reported another oil discovery during testing at the XN-79 02S exploratory well. The concession, spanning over 6,162 square kilometers, grants UBPL full concession rights and reflects a significant investment of approximately $166 million during the exploration phase, which has now been successfully completed.

The initial discovery came from the unconventional Shilaif formation at the XN-76 well. After hydraulic fracturing operations, the well began producing light crude oil at the surface, confirming the presence of unconventional oil reserves in the block. The second discovery, from the Habshan reservoir at XN-79 02S, marks the first oil find from this reservoir within the concession area. Both discoveries are currently undergoing appraisal activities to assess their economic viability and potential for development.

These discoveries represent an important milestone for both IOC and BPCL as international operators. The findings not only strengthen their global upstream portfolio but also support ongoing efforts to enhance India’s long-term energy security.

IOC expressed optimism about the results, highlighting that successful testing confirms unconventional oil resources in the onshore block. The company is focused on further appraisal to establish the economic feasibility of developing these wells.

BPCL, in a separate statement, noted that its wholly-owned subsidiary BPRL, through UBPL, is encouraged by these positive developments. The new discoveries will contribute significantly to India’s energy security goals. BPCL also mentioned ongoing work to develop the existing Ruwais field and explore additional hydrocarbon prospects within the concession area.

The production concession agreement grants UBPL equity rights over the oil produced, positioning the partnership to continue expanding its footprint in Abu Dhabi and beyond, supporting India's growing energy demands.

#Global News #Business News