Abu Dhabi recently awarded a production concession for Onshore Block-1 to Urja Bharat (UBPL), a joint venture between Indian Oil Corporation and Bharat Petroleum Corporation. This move by Abu Dhabi aims to advance the emirate’s hydrocarbon sector and ensure long-term economic prosperity. The Secretary General of the Supreme Council for Financial and Economic Affairs (SCFEA), Jassem Mohammed Bu Ataba Al Zaabi, emphasized the importance of international partnerships in reinforcing Abu Dhabi’s position as a global leader in the energy sector.
Al Zaabi stated that the concession to UBPL in the Al Ruwais area is part of SCFEA’s strategy to enhance the resilience and sustainability of the economy while supporting the UAE’s vision for long-term economic growth and stability. This award follows the exploration and production concession given to UBPL in March 2019, with an investment of nearly $164 million during the exploration phase. The total area covered by the concession agreement is 6,162 sq-km, providing UBPL with 100% concession rights.
Initial exploration efforts in the Ruwais area of Onshore Block 1 have shown positive results, indicating the presence of conventional undeveloped oil and gas resources. The development of these resources will contribute to Abu Dhabi’s goal of expanding its hydrocarbon sector and promoting sustainable economic growth in the emirate. This is the first full production concession awarded to an international company from Abu Dhabi’s exploration blocks bid rounds, showcasing the emirate’s commitment to international partnerships in its energy sector.
The production concession agreement grants UBPL the equity oil rights and supports the company’s efforts towards the energy security of India. This transaction marks the entry of BPRL as an operator for the development of a production concession in Abu Dhabi, aligning with its strategic objective of balancing its portfolio with production assets in prolific basins. This move not only benefits UBPL and its partner companies but also contributes to Abu Dhabi’s economic growth and energy sector expansion.
Overall, the award of the production concession to UBPL by Abu Dhabi signifies a significant step towards enhancing the emirate’s hydrocarbon sector and ensuring long-term economic prosperity. The strategic vision of SCFEA to strengthen the resilience and sustainability of the economy through international partnerships is reflected in this decision. With positive exploration results in the Al Ruwais area, UBPL is set to contribute to the development of Abu Dhabi’s oil and gas resources, supporting the emirate’s growth and stability in the long run.
