IOC and BPCL Uncover New Oil Reserves in Abu Dhabi, Enhancing India's Energy Landscape

The Indian Oil Corporation (IOC) alongside Bharat Petroleum Corporation Limited (BPCL) has unveiled crucial new oil discoveries in an onshore block in Abu Dhabi, amplifying their international exploration endeavors and contributing to India's energy security framework.

Their collaboration, Urja Bharat Pte Ltd (UBPL)—a joint venture equally held by IOC and BPCL’s exploration division, Bharat PetroResources Ltd (BPRL)—achieved its inaugural oil find in early 2024 at the exploratory site XN-76, which was allocated to UBPL in March 2019.

In addition, UBPL has announced another oil find from testing at the XN-79 02S exploratory well. Covering an area of over 6,162 square kilometers, the concession allows UBPL comprehensive concession rights and reflects a remarkable investment of around $166 million during the exploration phase, which has been successfully concluded.

The initial discovery originated from the unconventional Shilaif formation at XN-76. Following hydraulic fracturing, the well began yielding light crude oil, confirming the existence of unconventional oil resources in the block. The second discovery, from the Habshan reservoir at XN-79 02S, marks a first within this reservoir in the concession area. Appraisal activities for both findings are ongoing to evaluate their economic feasibility for further development.

These discoveries signify a crucial advancement for IOC and BPCL as they operate on an international scale. The findings not only bolster their global upstream portfolio but also reinforce efforts towards ensuring India's long-term energy security.

IOC conveyed optimism regarding the results, emphasizing that successful tests validate unconventional oil resources present in the onshore block. The focus remains on further appraisal to ascertain the financial viability of these wells.

In a separate announcement, BPCL highlighted that its fully-owned subsidiary BPRL, through UBPL, is optimistic about the promising results. These discoveries are set to make notable contributions to India's energy security objectives. BPCL also shared updates on the ongoing development of the existing Ruwais field and exploration of other hydrocarbon opportunities within the concession.

The production concession agreement grants UBPL equity ownership over the oil extracted, positioning the partnership to further extend its reach within Abu Dhabi and beyond, thereby supporting India's escalating energy demands.