IOC, BPCL arm announce oil discoveries in Abu Dhabi onshore block, Pg24

Key Highlights:

• IOC and BPCL announced oil discoveries in an onshore block in Abu Dhabi on Wednesday.
• Urja Bharat Pte Ltd (UBPL), a 50:50 joint venture, made its first oil discovery in the XN-76 exploration well in early 2024.
• A second oil discovery was made during drilling of exploratory well XN-79 02S in the same block.
• The partners have invested nearly $166 million in the exploration phase of the 6,162 square kilometre concession.

Detailed Insights:

• UBPL was awarded the Onshore Block 1 exploration concession in March 2019, granting it 100% concession rights.
• The first oil discovery was made in the unconventional Shilaif play at the XN-76 exploratory well, confirming unconventional oil resources.
• Appraisal activities will focus on confirming the economic viability of the wells, strengthening India's energy security efforts.
• These discoveries enhance IOC and BPCL's overseas upstream portfolio, contributing to diversified energy sources.

Key Concepts Involved:

• Upstream: Refers to the exploration and production phase in the oil and gas industry.
• Concession: A grant of rights to explore and develop natural resources in a specific area.
• Hydro-fracturing: A technique used to extract oil and gas from shale rock by injecting high-pressure fluid.