Urja Bharat Pte Limited (UBPL), a 50:50 special purpose vehicle (SPV) formed by a wholly-owned subsidiary of Indian Oil Corporation and Bharat Petro Resources Limited, has been awarded a production concession contract by the Supreme Council for Financial and Economic Affairs (SCFEA) in Abu Dhabi.

 

This comes following the awarding of the exploration and production concession to UBPL in March 2019, and the successful completion of the exploration phase, during which the SPV invested nearly $164 million, said the Indian group in a statement. 

 

The concession agreement includes a total area of up to 6,162 square kilometers, granting UBPL 100% concession rights. 

 

UBPL said the present transaction marks the entry of Indian Oil Corporation as an operator for development of a production concession in the highly prolific Abu Dhabi region.

 

This is consistent with its stated strategic objective of balancing its portfolio by adding production assets in prolific basins to its existing E&P portfolio.

 

Initial exploration efforts have yielded positive results in Onshore Block 1, including within the 38 sq km Ruwais area. With the award of the Production Concession, UBPL is eligible to commercially develop the oil and gas resources in the area, stated the Indian group. 

 

This is the first full production concession award to an international company from the 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, it added.-TradeArabia News Service