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Abu Dhabi awards key oil and gas concession to Indian JV

The latest move follows the award of the exploration and production concession to UBPL in March 2019

Published: Thu 12 Sep 2024, 7:52 PM

By
Issac John

Image for illustrative purposes only. — File photo

Abu Dhabi has awarded a key production concession for Onshore Block-1 to Urja Bharat (UBPL), a joint venture between Indian Oil Corporation and compatriot Bharat Petroleum Corporation.

Jassem Mohammed Bu Ataba Al Zaabi, Secretary General of the Supreme Council for Financial and Economic Affairs (SCFEA), Abu Dhabi, said the award of the production concession to UBPL in the Al Ruwais area affirms efforts to advance the emirate's hydrocarbon sector while ensuring the long-term economic prosperity of Abu Dhabi. “By approving and enabling international partnerships, SCFEA reinforces Abu Dhabi's position as a global leader in the energy sector.”

Al Zaabi said the latest concession is part of SCFEA’s broader strategy to enhance the resilience and sustainability of the economy, ensuring that resources continue to create value for future generations while supporting the UAE's vision for long-term economic growth and stability.

The latest move follows the award of the exploration and production concession to UBPL in March 2019, and the completion of the exploration phase, during which the company invested nearly $164 million.

The concession agreement covers a total area of up to 6,162 sq-km, offering UBPL 100 per cent concession rights. Initial exploration efforts have yielded positive results in Onshore Block 1, specifically within the 38 sq-km Ruwais area.

The area includes conventional undeveloped oil and gas resources, and its development will contribute to Abu Dhabi’s efforts to expand its hydrocarbon sector while promoting sustainable economic growth in the emirate. This is the first full production concession award to an international company from Abu Dhabi’s exploration blocks bid rounds.

The production concession agreement gives UBPL the equity oil rights and will supplement the efforts of the company towards energy security of India. The present transaction marks the entry of BPRL as an operator for development of a production concession in the highly prolific Abu Dhabi region and is consistent with its stated strategic objective of balancing its portfolio by adding production assets in prolific basins to its existing E&P portfolio.