Indian Oil Corporation (IOC) and Bharat Petroleum Corporation (BPCL) announced oil discoveries in an onshore block in Abu Dhabi, strengthening their overseas upstream portfolio and India’s energy security efforts.
Urja Bharat Pte Ltd (UBPL), a 50:50 special purpose vehicle of IOC and BPCL’s exploration and production arm Bharat PetroResources Ltd (BPRL), made its first oil discovery in XN-76 exploration well in early 2024, IOC said in a statement.
The company has now made another oil discovery during the drilling of exploratory well XN-79 02S in the block. UBPL was awarded the Onshore Block 1 exploration concession in March 2019.
India Oil- Bharat Petroleum joint investment strategy
The partners have invested nearly $166 million in the exploration phase, which has now been successfully completed.
The concession spans up to 6,162 square kilometres and grants UBPL 100% concession rights.
IOC said the first oil discovery was made in the unconventional Shilaif play at the XN-76 exploratory well. Following successful hydraulic fracturing operations, the well produced oil at the surface from the Shilaif formation, confirming the presence of unconventional oil resources in the block.
The partners stated that appraisal activities will focus on confirming the economic viability of the wells.
A second oil discovery was recorded during testing of the XN-79 02S exploratory well, which flowed crude oil from the Habshan reservoir, marking the first oil find in this reservoir within the concession area. The discovery will be appraised and progressed towards potential development.
The companies said the discoveries represent a significant milestone for IOC and BPCL as international operators and will support efforts to enhance India’s long-term energy security.
“In early 2024, UBPL made its first oil discovery in the Unconventional Shilaif play in XN-76 exploratory well. After successful hydrofracking operations, the well flowed light crude oil at surface from the Shilaif formation. The successful testing results have established the presence of unconventional oil resources in Onshore Block 1,” IOC said.
“The company is very positive with the well results and looking forward to further establishing the economic deliverability of wells during the appraisal phase.” UBPL has also witnessed the oil discovery during testing of the exploratory well XN79 02S in the Onshore Block 1.
“The well flowed light crude oil, marking it the first oil found in the Habshan reservoir in the concession area. Going forward, this discovery would be appraised and matured for potential development,” IOC added.
BPCL’s independent Abu Dhabi investment
Separately, BPCL, in a stock exchange filing, stated that its 100 per cent subsidiary Bharat PetroResources Limited (BPRL), through a 50:50 special purpose vehicle – UBPL – has announced the oil discovery in the operated Onshore Block 1, Abu Dhabi on January 13.
“Such positive developments are very encouraging and certainly a significant achievement for BPRL, as an international operator,” it said. “These new oil discoveries will supplement the efforts of the BPRL towards the energy security of India.”
The production concession agreement grants UBPL the equity oil rights and will supplement the company’s efforts towards India’s energy security. IOC also notes the positive developments are “very encouraging” and “certainly a significant achievement for both the parent companies of UBPL, as international operators.” “In addition, both companies through UBPL are advancing towards development of the existing Ruwais field and exploring other potential hydrocarbon prospects within the concession area,” it added.