New Delhi: Indian Oil Corporation Limited (IOCL) and Bharat Petroleum Corporation Limited (BPCL) on Wednesday announced oil discoveries in Abu Dhabi’s Onshore Block 1 through their joint venture Urja Bharat Pte Limited (UBPL), where the two companies hold equal stakes.
UBPL, a 50:50 special purpose vehicle of Indian Oil and Bharat PetroResources Limited (BPRL), was awarded the Onshore Block 1 exploration concession in 2019 under Abu Dhabi’s bid round. The concession is operated by UBPL.
Indian Oil said the first oil discovery was made in early 2024 in the unconventional Shilaif play at the XN-76 exploratory well. “After successful hydrofracking operations, the well flowed light crude oil at surface from the Shilaif formation,” the company said, adding that the test results have “established the presence of unconventional oil resources in Onshore Block 1.”
According to Indian Oil, the company is “very positive with the well results” and is now looking to “further establish the economic deliverability of wells during the appraisal phase.”
A second discovery has also been confirmed during testing of the XN-79 02S exploratory well. Indian Oil said the well flowed light crude oil, “marking it the first oil find in the Habshan reservoir in the concession area,” and noted that the discovery will be appraised and matured for potential development.
In a separate statement, BPCL said the discoveries were announced on January 13, following the successful completion of the exploration phase, during which UBPL invested nearly USD 166 million.
Both companies described the twin discoveries as a major milestone in their overseas upstream journey. Indian Oil termed the finds “a significant achievement for both the parent companies of UBPL, as international operators.”
BPCL said the developments were “certainly a significant achievement for BPRL, as an international operator,” and added that “these new oil discoveries will supplement the efforts of the BPRL towards energy security of India.”
Indian Oil also said that, beyond the new discoveries, the JV is advancing plans for development of the existing Ruwais field and is exploring other hydrocarbon prospects within the concession area.
(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)