Indian Oil, BPCL JV makes fresh oil discovery in Abu Dhabi onshore block

Indian Oil and a BPCL arm have reported a new oil find in Abu Dhabi through their joint venture. The discovery follows an earlier find in 2024, the company said

Indian Oil Corporation (IOC) on Wednesday announced that its overseas joint venture with Bharat PetroResources, a wholly owned subsidiary of Bharat Petroleum Corporation Ltd (BPCL), has made a new oil discovery in Abu Dhabi’s Onshore Block 1.

 

The block is operated through Urja Bharat Pte Ltd (UBPL), a 50:50 venture between IOCL and Bharat PetroResources. UBPL won the concession in Abu Dhabi’s 2019 bid round, the state-owned oil and gas giant said.

 

It added that testing of the exploratory well XN79-02S resulted in a flow of light crude oil, marking the first oil find in the Habshan reservoir within the concession area. The discovery will now be appraised and assessed for potential development, the company said.

 

 

The latest find comes after UBPL’s first discovery in the same block in early 2024, when oil was struck in the "unconventional Shilaif play" at the XN-76 well. "After successful hydrofracking operations, the well flowed light crude oil at the surface from the Shilaif formation," the company said in a BSE filing.

 

Hydraulic fracturing, commonly known as hydrofracking, is the process of injecting water, sand, and/or chemicals into a well to break up underground bedrock to free up oil or gas reserves. 

 

"The successful testing results have established the presence of unconventional oil resources in Onshore Block 1. 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.

 

It also said that the Habshan discovery would be taken forward for appraisal and maturation towards possible development. "Such positive developments are very encouraging and certainly 8 significant achievement for both the parent companies of UBPL, as international operators," IOC said.

 

Both companies spent about $166 million on the exploration phase, which has now been completed. The concession covers up to 6,162 sq km and gives UBPL full operating rights, reported PTI.

 

While IOC or BPCL did not reveal any specifics about the discovery, it comes at a crucial time when India is gradually reducing dependence on Russian oil and widening its sourcing to strengthen energy security.