New Delhi: Bharat Petroleum Corporation (BPCL) has announced that its subsidiary, in collaboration with Indian Oil Corporation (IOC), has been awarded a production concession by the Supreme Council for Financial and Economic Affairs (SCFEA) in Abu Dhabi. This concession follows the successful completion of an earlier exploration phase under an agreement granted to Urja Bharat Pvt Limited (UBPL) in March 2019.
UBPL, a 50:50 Special Purpose Vehicle (SPV) formed by BPCL and IOC, now holds 100% concession rights over a total area of up to 6,162 square kilometers. The designated area includes significant undeveloped conventional oil and gas resources, according to BPCL’s statement.
Early exploration efforts have already delivered promising results in the Onshore Block 1, particularly in the Ruwais area, covering 38 square kilometers. BPCL revealed that approximately USD 164 million was invested during the exploration phase.
The production concession agreement grants UBPL equity oil rights, which BPCL says will bolster its efforts in enhancing India's energy security. This deal also marks a significant milestone for Bharat PetroResources Limited (BPRL), positioning it as an operator for the development of a production concession in the resource-rich Abu Dhabi region.
BPCL emphasised that this development is aligned with its strategic goal of diversifying its portfolio by acquiring production assets in prolific basins, complementing its existing exploration and production (E&P) portfolio. /BI
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