Indian Oil Corporation Ltd (IOC) and Bharat Petroleum Corporation Ltd (BPCL) on Wednesday 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 their first oil discovery in XN-76 exploration well in early 2024, IOC said in a statement. It has now made another oil discovery during drilling of exploratory well XN-79 02S in the block, it said.
UBPL was awarded the Onshore Block 1 exploration concession in March 2019. The partners have invested nearly USD 166 million in the exploration phase, which has now been successfully completed. The concession spans up to 6,162 square km and grants UBPL 100 per cent concession rights.
IOC said the first oil discovery was made in the unconventional Shilaif play at the XN-76 exploratory well. Following successful hydro-fracturing operations, the well flowed oil at surface from the Shilaif formation, establishing the presence of unconventional oil resources in the block. The partners said appraisal activities will focus on confirming the economic deliverability 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," it said.
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 as 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.
Separately, BPCL said in a stock exchange filing that its 100 per cent subsidiary Bharat PetroResources Limited (BPRL), through a 50:50 special purpose vehicle, UBPL, has announced the oil discovery in 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 energy security of India."
The production concession agreement gives UBPL the equity oil rights and will supplement the efforts of the company towards energy security of India. IOC said 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.
Also read: ONGC, OIL aim to begin stratigraphic drilling next year
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