Major Oil Discovery by IOCL, BPCL in Abu Dhabi's Onshore Block 1

Indian Oil Corporation Limited (IOCL) and Bharat PetroResources Limited, a wholly owned arm of Bharat Petroleum Corporation Limited (BPCL), have announced a fresh IOCL BPCL oil discovery in Abu Dhabi through their joint venture, Urja Bharat Pte Limited (UBPL). 

It was found in Abu Dhabi Onshore Block 1 where UBPL is run in a 50:50 joint venture between IOCL and BPCL. This compromise was achieved in early 2019 when Abu Dhabi held a hydrocarbon bid round.

The breakthrough of the joint venture was made in the first half of the year in the XN-76 well which was exploratory. The well was drilled on the unorthodox Shilaif formation and it successfully contained light crude oil to the surface following the hydro-fracturing procedures. This proved the existence of unconventional oil deposits and incorporated a milestone in the exploration campaign of UBPL in the block.

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The momentum was followed by discovery of second oil at the XN79-02S well of exploration. The Habshan reservoir was found to have light crude oil, thus becoming the first oil discovery in the reservoir in Onshore Block 1. The outcome further improves the potential of the asset and increases the future development possibilities.

UBPL will undergo the appraisal stage after the discovery of the IOCL BPCL oil in Abu Dhabi. Progress to be made involves more drilling, testing of the well, and thorough technical investigations to determine the behavior of the reservoir, production capacity, and business feasibility.

In addition to the success of the exploration, UBPL is also undertaking development activities at the Ruwais field, and assessing other opportunities within the concession. The partners claimed that the findings reinforce their international upstream portfolios and solidify their long-term energy strategy.