Indian Oil Corporation Limited (IOCL) and Bharat PetroResources Limited, a wholly owned subsidiary of Bharat Petroleum Corporation Limited (BPCL), have reported oil discoveries in Abu Dhabi’s Onshore Block 1 through their joint venture, Urja Bharat Pte Limited (UBPL). UBPL operates the Onshore Block 1 exploration concession under a 50:50 joint venture structure between IOCL and BPCL. The concession was awarded to UBPL in early 2019 as part of Abu Dhabi’s bid round for hydrocarbon exploration blocks.
In early 2024, UBPL achieved its first oil discovery in the unconventional Shilaif formation at the XN-76 exploratory well. Following successful hydro-fracturing operations, the well flowed light crude oil to the surface, confirming the presence of unconventional oil resources within the block. The results marked a significant milestone for the joint venture and demonstrated the geological potential of the concession area.
A second oil discovery was subsequently recorded during testing of the exploratory well XN79-02S. The well encountered light crude oil in the Habshan reservoir, marking the first oil discovery in this reservoir within Onshore Block 1. This finding further strengthens the resource potential of the concession and opens up additional opportunities for appraisal and future development.
The joint venture will now undertake appraisal activities to evaluate the commercial viability of the discoveries and determine development options. These activities will include further drilling, testing and technical evaluation to assess reservoir characteristics, production potential and economic feasibility.
In addition to the new discoveries, UBPL is also progressing work related to the development of the existing Ruwais field and continues to assess other hydrocarbon prospects within the concession area. The partners stated that these developments represent an important step in strengthening their international upstream portfolios.
The discoveries are considered a significant achievement for both IOCL and BPCL as international operators and reflect their growing capabilities in overseas exploration and production activities. The companies view the results as encouraging and aligned with their long-term strategy of diversifying resource bases and enhancing energy security through global assets.
