IOC and BPCL arm announce crude oil discoveries in Abu Dhabi onshore block

New Delhi: Indian Oil Corporation (IOC) and Bharat Petroleum Corporation Ltd (BPCL) on Wednesday announced two light crude oil discoveries in Abu Dhabi’s Onshore Block-1, a development that strengthens India’s overseas upstream footprint and adds momentum to the country’s broader push for long-term energy security.

The discoveries were made by Urja Bharat Pte Ltd (UBPL), a 50:50 special purpose vehicle formed by IOC and BPCL’s exploration and production arm Bharat PetroResources Ltd (BPRL). Minister for Petroleum and Natural Gas Hardeep Singh Puri described the development as a key step toward energy self-sufficiency, saying India has reached “a milestone towards energy self-sufficiency” with the successful finding of crude oil in the concession area.

According to IOC, UBPL’s first oil discovery was made in early 2024 at the XN-76 exploration well, located in an unconventional play known as Shilaif. The company said that after successful hydro-fracturing operations, the well produced oil to the surface from the Shilaif formation, confirming the presence of unconventional oil resources in the block.

“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,” IOC said, adding that the test results established unconventional oil potential in the concession area.

The second discovery came more recently during drilling and testing of exploratory well XN-79 02S. IOC said the well flowed crude oil from the Habshan reservoir, calling it the first oil find in that reservoir within the concession area. The company said the discovery will now be appraised and moved toward potential development.

“The well flowed light crude oil, marking it 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 said.

UBPL was awarded the Onshore Block-1 exploration concession in March 2019. The concession spans up to 6,162 square kilometres and grants UBPL 100 per cent concession rights, the company said. IOC and BPCL have invested nearly $166 million during the exploration phase, which has now been completed.

The next focus will be on appraisal work, with IOC stating that activities will concentrate on confirming the economic deliverability of the discovered wells. “The company is very positive with the well results and looking forward to further establishing the economic deliverability of wells during the appraisal phase,” IOC said.

BPCL also disclosed the development through a stock exchange filing, stating that its 100 per cent subsidiary BPRL, through UBPL, announced the discovery in the operated block on January 13. “Such positive developments are very encouraging and certainly a significant achievement for BPRL, as an international operator,” BPCL said, adding that the discoveries will contribute to India’s energy security efforts. Puri said the discovery across both the Shilaif play and Habshan reservoir underlines the strength of international partnerships in securing supplies. He added that the achievement reflects the technical capability of Indian teams and is a significant step in IOC’s expanding global upstream journey. IOC said the discoveries mark a major milestone for IOC and BPCL as international operators, noting that UBPL is also advancing the development of the existing Ruwais field while evaluating other hydrocarbon prospects within the concession area.