IOCL, BPCL’s exploration arm joint venture discover oil in Abu Dhabi Onshore Block 1

State-owned refiners Indian Oil Corporation Ltd. and Bharat Petroleum’s exploration arm informed bourses on Wednesday (January 14, 2026) that oil resources have been discovered at Abu Dhabi’s Onshore Block 1 through their joint venture Urja Bharat Pte Limited (UBPL). The two refiners hold equal stakes in the joint venture.

The Onshore Block 1 was accorded to a joint venture of BPCL and IOCL, Urja Bharat, for exploration and appraisal.

In 2019, the Abu Dhabi National Oil Company entered into an agreement with UBPL to explore, appraise and develop the concession area’s hydrocarbon resources, including confirming the presence and extent of oil and gas in the field. The agreement covers a total area of up to 6,162 square kilometres, wherein UBPL holds complete concession rights.

The joint venture made its first oil discovery in the unconventional Shilaif play at the XN-76 exploratory well in early 2024.

Following successful hydraulic fracturing operations, the well flowed light crude oil from the surface of the formation, establishing the presence of unconventional oil resources in the block.

“The company is very positive with the well results and looking forward to further establish the economic deliverability of wells during the appraisal phase [that is, establishing the size and extent of oil and gas present],” the companies said in their communication to the exchanges.

The joint venture also discovered oil in another exploratory well, XN79 02S, in the block. The well also flowed light crude oil. “Going forward this discovery would be appraised and matured for potential development,” they said.

Separately, in a social media post, Union Minister for Petroleum and Natural Hardeep Singh Puri congratulating the refiners on the milestone, wrote, “These breakthroughs reflect the dedication and technical excellence of our teams and reinforce our commitment to strengthening India’s energy security through strategic international partnerships.” He added, “We look forward to advancing and unlocking further hydrocarbon potential in the concession.”