IOC, BPCL announce fresh oil discovery in Abu Dhabi block after $166 million investment

Urja Bharat, the IOC–BPCL joint venture, reports a second oil discovery in Abu Dhabi’s Onshore Block 1, with appraisal now planned.

• IOC and BPCL JV UBPL makes second oil discovery in Abu Dhabi onshore block
• Discovery strengthens India's energy security and overseas upstream portfolio
• Next phase will assess wells' commercial viability before development decisions.

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Indian state-run refiners Indian Oil Corporation Ltd and Bharat Petroleum Corporation Ltd on Wednesday announced a second oil discovery in an onshore exploration block in Abu Dhabi, strengthening their overseas upstream portfolio and India’s long-term energy security strategy.

The discovery was made by Urja Bharat Pte Ltd (UBPL), a 50:50 joint venture between IOC and BPCL’s exploration arm Bharat PetroResources Ltd.

IOC said UBPL struck oil during drilling of exploratory well XN-79 02S in the onshore concession. This follows the first oil discovery made in early 2024 at the XN-76 exploratory well.

The joint venture was awarded Onshore Block 1 in March 2019 and has invested nearly $166 million in the exploration phase, which has now been completed.

According to IOC, the first discovery was made in the unconventional Shilaif play, where oil flowed to the surface after successful hydro-fracturing operations, establishing the presence of unconventional oil resources in the block.

The second discovery, at XN-79 02S, flowed crude oil from the Habshan reservoir, marking the first oil find in this reservoir within the concession area.

The partners said the next stage will focus on appraisal to confirm the economic deliverability of the wells before any development decision.

IOC said it is 'very positive' about the results and will move towards assessing commercial viability during the appraisal phase.

The onshore concession spans up to 6,162 sq km and grants UBPL 100 per cent concession rights, including equity oil. While volumes have not been disclosed, the discoveries carry strategic significance at a time when India is seeking to diversify crude supply sources and reduce exposure to import disruptions.

For IOC and BPCL, the finds also mark a milestone as international operators rather than passive partners—contrasting with earlier overseas assets where Indian firms often held minority stakes.

BPCL, in a separate stock exchange filing, said its wholly owned subsidiary BPRL, through UBPL, announced the oil discovery in the operated onshore block on January 13.

The company said the development would supplement efforts to strengthen India’s energy security and added that UBPL is also advancing work on the existing Ruwais field while evaluating other hydrocarbon prospects within the concession area.