IOC and BPCL Uncover Significant Oil Finds in Abu Dhabi, Enhancing India's Energy Strategy

Post by : Mina Rahman

Indian Oil Corporation (IOC) and Bharat Petroleum Corporation Limited (BPCL) have recently reported notable new oil discoveries in an onshore block located in Abu Dhabi, marking a crucial enhancement to their international exploration initiatives and furthering India's energy security aims.

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)—achieved its first oil find in early 2024 at the XN-76 exploratory well in Onshore Block 1, which was awarded to UBPL in March 2019.

Subsequently, UBPL has announced an additional oil discovery during testing at the XN-79 02S exploratory well. The concession area, covering over 6,162 square kilometers, grants UBPL full concession rights and signifies an investment of around $166 million throughout the exploration phase, which has now been successfully concluded.

The initial discovery originated from the unconventional Shilaif formation at the XN-76 well. Following hydraulic fracturing, the well commenced production of light crude oil, affirming the existence of unconventional oil reserves in the block. The second discovery, from the Habshan reservoir at XN-79 02S, marks the first oil find in this reservoir within the concession area. Appraisal activities for both discoveries are currently underway to evaluate their economic viability and potential for further development.

These findings mark a significant achievement for IOC and BPCL as international operators. Not only do they enhance their global upstream portfolio, but they also aid in strengthening India's long-term energy security efforts.

IOC has expressed optimism regarding these results, stressing that the successful testing confirms the presence of unconventional oil resources within the onshore block. The company is committed to further appraisals to determine the economic feasibility of developing these wells.

BPCL also remarked that its wholly-owned subsidiary BPRL, through UBPL, is encouraged by these promising developments. The new findings will play a substantial role in achieving India's energy security objectives. Furthermore, BPCL mentioned its ongoing efforts to enhance the existing Ruwais field and to investigate other hydrocarbon opportunities within the concession area.

The production concession agreement grants UBPL equity rights over the extracted oil, positioning the partnership for continuous expansion in Abu Dhabi and beyond, catering to India's increasing energy needs.