Bharat Petroleum Corporation (BPCL) on Wednesday said its subsidiary, along with Indian Oil Corporation (IOC), has been awarded a production concession by the Supreme Council for Financial and Economic Affairs (SCFEA), Abu Dhabi.
Urja Bharat Pte Limited (UBPL) is a 50:50 Special Purpose Vehicle (SPV) of BPCL and IOC. The production concession agreement, BPCL said, follows the award of the exploration and production concession to UBPL in March 2019 and the successful completion of the exploration phase.
The concession agreement covers a total area of up to 6,162 square kilometres, offering UBPL 100 per cent concession rights. The area includes conventional undeveloped oil and gas resources, BPCL said. “Initial exploration efforts have yielded positive results in Onshore Block 1, specifically within the 38-square-kilometre Ruwais area,” the statement added.
BPCL added that during the exploration phase, the company invested nearly $164 million.
The production concession agreement, BPCL said, gives UBPL equity oil rights and will supplement the efforts of the company towards the energy security of India.
The present transaction, BPCL said, also marks the entry of BPRL as an operator for the development of a production concession in the highly prolific Abu Dhabi region. The statement added that the transaction is consistent with its stated strategic objective of balancing its portfolio by adding production assets in prolific basins to its existing exploration and production (E&P) portfolio.
BPCL noted that this is the first full production concession award to an international company from Abu Dhabi’s exploration blocks bid rounds.
First Published: Sep 11 2024 | 6:00 PM IST
