BPCL-IOCL joint venture secures production rights in Abu Dhabi

BPCL’s subsidiary Bharat PetroResources Limited (BPRL), 100% owned by BPCL, and the Indian Oil Corporation (IOCL) formed a joint venture in February 2019. The JV, Urja Bharat Pte Limited (UBPL), is a 50:50 special purpose vehicle (SPV) of the two state-run refineries.

BPCL mentioned that the production concession follows the March 2019 award of the exploration and production concession to UBPL and the successful completion of the exploration, during which the JV invested $164 million.

The production rights cover a total area of up to 6,162 square kilometres and offer 100% concession rights to the JV.

“The area includes conventional undeveloped oil and gas resources, and its development will contribute to Abu Dhabi's efforts to expand its hydrocarbon sector while promoting sustainable economic growth in the emirate. This is the first full production concession award to an international company from Abu Dhabi’s exploration blocks bid rounds,” the statement said.

BPCL said that the production concession agreement gives UBPL equity oil rights and will aid the efforts of the JV toward the energy security of India. It added that this agreement also serves as the entry of Bharat PetroResources Limited (BPRL) “as an operator for the development of a production concession in the highly prolific Abu Dhabi region and is consistent with its stated strategic objective of balancing its portfolio by adding production assets in prolific basins to its existing E&P portfolio.”