The Supreme Council for Financial and Economic Affairs of Abu Dhabi has awarded full production rights for an onshore oil and gas block to UBPL.
UBPL is a JV between BPCL subsidiary BPRL and the Indian Oil Corporation.
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This follows the award of the exploration and production concession to UBPL in March 2019 and the successful completion of the exploration phase, during which the company invested nearly $164m (Rs13.77bn).
It represents the first full production concession given to an international entity from Abu Dhabi’s exploration block bid rounds.
The concession agreement spans an area of up to 6,162km², granting UBPL 100% rights over the block.
In a stock filing, BPCL said the initial exploration within the 38km² Ruwais area of Onshore Block 1 has revealed promising oil and gas resources.
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By GlobalDataThe development of these resources is part of Abu Dhabi’s strategy to enhance its hydrocarbon sector and foster sustainable economic growth.
It grants UBPL equity oil rights, supporting India’s energy security ambitions.
“The present transaction marks 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 [exploration and production] portfolio,” BPCL said.
Recently, Abu Dhabi National Oil Company (ADNOC) and the Indian Oil Corporation signed a 15-year agreement for the annual supply of one million tonnes of liquefied natural gas (LNG), primarily sourced from ADNOC’s lower-carbon Ruwais LNG project.
This agreement was formalised during Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan’s visit to India, where discussions with Prime Minister Narendra Modi took place.
In tandem with the LNG supply deal, ADNOC has also expanded its partnership with Indian Strategic Petroleum Reserve, enhancing India’s energy reserves through an extended oil storage agreement.
