Abu Dhabi has granted a significant production concession for Onshore Block-1 to Urja Bharat (UBPL), a joint venture between Indian Oil Corporation and Bharat Petroleum Corporation. Jassem Mohammed Bu Ataba Al Zaabi, Secretary General of the Supreme Council for Financial and Economic Affairs (SCFEA) in Abu Dhabi, stated that the concession awarded to UBPL in the Al Ruwais area underscores the efforts to propel the emirate's hydrocarbon sector while safeguarding its long-term economic prosperity. "By endorsing and facilitating international collaborations, SCFEA solidifies Abu Dhabi's status as a global energy leader," Al Zaabi noted. This latest concession is integral to SCFEA's comprehensive strategy to bolster the economy's resilience and sustainability, ensuring that resources continue to generate value for future generations and support the UAE's vision for sustained economic growth and stability.
This development follows the award of the exploration and production concession to UBPL in March 2019 and the subsequent completion of the exploration phase, during which the company invested approximately $164 million. The concession agreement encompasses an area of up to 6,162 square kilometers, granting UBPL 100 percent concession rights. Preliminary exploration efforts in Onshore Block 1, particularly within the 38 square kilometer Ruwais area, have yielded promising results. The area is rich in conventional undeveloped oil and gas resources, and its development will aid Abu Dhabi in expanding its hydrocarbon sector while fostering sustainable economic growth.
This marks the first full production concession awarded to an international company from Abu Dhabi's exploration blocks bid rounds. The production concession agreement provides UBPL with equity oil rights, complementing the company's efforts to enhance India's energy security. This transaction signifies BPRL's entry as an operator for the development of a production concession in the highly productive Abu Dhabi region, aligning with its strategic goal of diversifying its portfolio by acquiring production assets in prolific basins to complement its existing exploration and production portfolio.
