IOCL & BPCL Discover Oil in Abu Dhabi Onshore Block 1

India’s leading public sector energy major Indian Oil Corporation Limited (IOCL) has achieved a major international breakthrough with the discovery of significant oil resources in Abu Dhabi’s Onshore Block 1, in partnership with Bharat PetroResources Limited, a 100% subsidiary of Bharat Petroleum Corporation Limited (BPCL).

The two Indian companies operate the concession through their joint venture Urja Bharat Pte Limited (UBPL) with equal 50:50 ownership. UBPL was awarded the exploration rights for Onshore Block 1 in Abu Dhabi under the 2019 bid round.

First Discovery: Unconventional Oil in Shilaif Formation

In early 2024, UBPL successfully made its first oil discovery at the XN-76 exploratory well, tapping into the unconventional Shilaif play. After advanced hydrofracking operations, the well produced light crude oil at the surface, confirming the presence of commercially viable unconventional oil resources in the block.

Encouraged by the results, the companies are now preparing for the appraisal phase to further establish the economic viability and long-term production potential of the field.

Second Discovery: Habshan Reservoir Unlocks New Potential

UBPL achieved another significant breakthrough during the testing of exploratory well XN79-02S, which flowed light crude oil, marking the first-ever oil discovery in the Habshan reservoir within the concession area.

This new discovery will now undergo detailed appraisal and technical evaluation before being developed for potential commercial production.

Strengthening India’s Global Energy Footprint

These twin discoveries represent a major achievement for both IOCL and BPCL as international energy operators. In addition to these exploration successes, UBPL is also progressing work toward the development of the existing Ruwais field while continuing to explore additional hydrocarbon prospects across the concession area.

Industry experts believe the discoveries will significantly strengthen India’s overseas energy security and reinforce the country’s growing presence in the global oil and gas sector.