Indian Oil Confirms Abu Dhabi Unconventional Oil Find; Shares in Focus
Overview
Indian Oil Corporation has confirmed significant unconventional oil resources in Abu Dhabi's Onshore Block 1 through its joint venture, Urja Bharat Pte Limited. Successful testing of two exploratory wells, XN-76 and XN79-02S, yielded light crude oil, marking a major milestone and paving the way for potential economic viability and development.
Discovery Confirmed in Abu Dhabi
Indian Oil Corporation (IOC) announced today the successful confirmation of unconventional oil resources in Abu Dhabi's Onshore Block 1. This development stems from extensive testing, with the company expressing significant optimism regarding the well results and the prospect of establishing economic viability during the appraisal phase.
Joint Venture Success
The discovery was made via Urja Bharat Pte Limited (UBPL), a special purpose vehicle jointly operated by Indian Oil Corporation and Bharat PetroResources Ltd. (BPRL), a subsidiary of Bharat Petroleum Corporation Ltd. (BPCL). This venture operates on a 50:50 partnership, with UBPL having secured the exploration concession in early 2019.
Exploratory Well Results
In early 2024, UBPL first struck oil in the unconventional Shilaif play at the XN-76 exploratory well. Following successful hydrofracking, the well produced light crude oil from the Shilaif formation. Subsequently, another oil discovery was reported from exploratory well XN79-02S in the same concession. This second well flowed light crude oil from the Habshan reservoir, representing the block's first oil find in this specific formation.
Future Development and Outlook
These successful tests are viewed as a huge milestone for both IOC and BPRL as international operators. The newly discovered Habshan reservoir will now undergo appraisal and advance toward potential development. Furthermore, UBPL is continuing progress on the existing Ruwais field and evaluating other hydrocarbon prospects within the concession area.
