Post by : Meena
Hassan
The Indian Oil Corporation (IOC) alongside Bharat Petroleum Corporation Limited (BPCL) has revealed noteworthy oil discoveries within Abu Dhabi’s onshore block, reinforcing their global exploration initiatives while advancing India’s energy security agenda.
The joint venture, Urja Bharat Pte Ltd (UBPL)—a collaboratively owned entity by IOC and BPCL’s exploration unit Bharat PetroResources Ltd (BPRL)—has achieved its initial discovery in early 2024 at the XN-76 exploratory site, which UBPL acquired in March 2019.
Subsequently, UBPL has identified another oil source through tests at the XN-79 02S exploratory well. Covering an area of 6,162 square kilometers, this concession allocates comprehensive rights to UBPL, reflecting an investment of approximately $166 million during the successful exploration phase.
The primary find emerged from the unconventional Shilaif formation at the XN-76 location. Following hydraulic fracturing, the site started producing light crude oil, thus validating the presence of unconventional oil reserves in the area. The second find from the Habshan reservoir at XN-79 02S denotes the first oil discovery from that reservoir within this concession. Both findings are undergoing evaluations to ensure their economic viability and potential development.
These significant discoveries mark a vital progression for IOC and BPCL as international entities. They not only bolster their global upstream presence but also aid in advancing India’s sustained energy security.
IOC has voiced optimism over these results, underlining that successful tests confirm unconventional oil reserves in the onshore block. The company aims to pursue further assessments to derive the economic benefits of these wells.
In a related statement, BPCL remarked that their subsidiary BPRL, through UBPL, is buoyed by these impactful discoveries. They will significantly aid India’s energy security objectives. BPCL also emphasized ongoing development in the Ruwais field and additional hydrocarbon explorations within the concession.
This production concession agreement provides UBPL with rights over the produced oil, enabling the partnership to enhance its presence in Abu Dhabi and cater to India’s escalating energy needs.
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