Particle.news
Download on the App Store

IOCBPCL JV Confirms Habshan Oil Discovery in Abu Dhabi Block 1 as Appraisal Begins

The venture shifts into appraisal after a $166 million exploration program to determine whether the new wells can be produced commercially.

Overview

  • Urja Bharat Pte Ltd, the 50:50 JV of IOC and BPCL’s BPRL, reported light crude flow from well XN-79 02S in the Habshan reservoir, the first oil found there within the concession.
  • An earlier test at well XN-76 in the unconventional Shilaif play flowed light crude after hydro-fracturing, confirming unconventional oil resources in Onshore Block 1.
  • The exploration phase has concluded on the March 2019 concession covering up to 6,162 sq km, with nearly $166 million invested and 100% concession rights held by UBPL.
  • Appraisal will focus on confirming economic deliverability, with any development dependent on technical results, capital plans and approvals from Abu Dhabi authorities.
  • The partners say the discoveries strengthen their overseas upstream portfolio and, under the production concession, equity oil would support India’s energy security if commerciality is established.