State-owned Indian Oil Corporation (IOC) on March 25 said it along with its partner Bharat PetroResources Ltd (BPRL) has won an oil block in Abu Dhabi, where the two will invest $170 million.
IOC-BPRL won the block in Abu Dhabi's first-ever competitive bid round.
"IOC and BPRL, a subsidiary of Bharat Petroleum Corporation Ltd (BPCL), acting jointly as a consortium through Urja Bharat Pte Ltd have been awarded 100 percent stake in the Abu Dhabi Onshore Block 1 Concession," it said in a regulatory filing.
The Concession has been awarded by the Supreme Petroleum Council (SPC), on behalf of the Abu Dhabi government, where participation of the Indian consortium is through a special purpose vehicle (SPV), Urja Bharat Pte Ltd.
IOC and BPRL hold 50 percent each in Urja Bharat Pte Ltd.
"The Indian consortium will make an investment of $170 million for the exploration activities," it said.
The Concession award is for 35 years with the effective date of March 24, 2019.
The concession agreement was signed by Abu Dhabi National Oil Company (ADNOC) Chief Executive Officer Sultan Ahmed Al Jaber, IOC Chairman Sanjiv Singh, and BPCL Chairman and Managing Director Duraiswamy Rajkumar.
"Onshore Block 1 covers an area of 6,162 square kilometres around Ruwais field and includes already discovered but undeveloped fields," the filing said. "The present transaction marks the entry of IOC as joint operator in the highly prospective UAE region and is consistent with its strategic objective of adding high-quality exploration and production (E&P) assets to its existing upstream portfolio."
The UAE is the world's seventh-largest oil producer, with about 96 percent of its reserves within the Emirate of Abu Dhabi.
Onshore Block 1 is located in the Al Dhafra region around Ruwais City and the refining complex, including the coastal region to the west. There are two existing undeveloped oil and gas fields in the area, named Ruwais and Mirfa, which will be appraised by the consortium.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
