IOC, BPCL announce fresh oil discoveries in Abu Dhabi onshore block

State-run Bharat Petroleum Corporation Limited (BPCL) and Indian Oil Corporation Limited (IOCL) on Wednesday announced fresh oil discoveries in their jointly operated onshore exploration block in Abu Dhabi.

BPCL’s wholly owned subsidiary Bharat PetroResources Ltd (BPRL), the exploration and production arm of the company, said the discoveries were made through a 50:50 special purpose vehicle, Urja Bharat Pte Ltd (UBPL), which operates Onshore Block 1 in Abu Dhabi.

The oil discovery was announced following the successful completion of the exploration phase, during which UBPL invested nearly USD 166 million.

The exploration concession was awarded to UBPL in March 2019 under Abu Dhabi’s bid round.

According to BPCL, the first discovery in the unconventional Shilaif play was made in the XN-76 exploratory well.

After hydrofracking operations, the well flowed oil to the surface from the Shilaif formation, establishing the presence of unconventional oil resources in the block.

A second oil discovery was recorded during testing of the XN-79 02S exploratory well, which flowed crude oil from the Habshan reservoir. The discovery will be appraised and progressed towards potential development.

The concession agreement covers an area of up to 6,162 square kilometres and grants UBPL 100% concession rights.

The production concession agreement gives UBPL the equity oil rights and will supplement the efforts of the company towards energy security of India.

BPRL said it was encouraged by the results and would focus on establishing the economic deliverability of the wells during the appraisal phase.

IOCL said the discoveries were a significant achievement for both parent companies as international operators.

"The company is very positive with the well results and looking forward to further establishing the economic deliverability of wells during the appraisal phase," it added.

Both companies through UBPL are also advancing towards development of the existing Ruwais field and exploring other potential hydrocarbon prospects within the concession area.