Bharat Petroleum Corporation Limited has announced a major milestone for its exploration and production subsidiary, with the successful discovery of oil in Abu Dhabi Onshore Block 1. The discovery, announced on January 13, 2026, represents a significant achievement for Bharat PetroResources Limited (BPRL) as an international operator and marks a crucial step toward enhancing India's energy security.

Joint Venture Structure and Investment

The oil discovery was made through Urja Bharat Pte Limited (UBPL), a 50:50 Special Purpose Vehicle that serves as BPRL's operational arm for this project. The exploration journey began in March 2019 when UBPL was awarded the exploration concession, leading to substantial investment and systematic exploration activities.

Successful Well Discoveries

BPRL achieved breakthrough results with oil discoveries in two separate wells, demonstrating the block's significant potential across different geological formations. The first major success came from the XN-76 well in the Unconventional Shilaif play, where successful hydrofracking operations resulted in oil flowing to the surface from the Shilaif formation.

The second discovery occurred during testing of exploration well XN-79 02S, which flowed crude oil from the Habshan reservoir. This marks the first oil find in the Habshan reservoir within the concession area, expanding the geological understanding of the block's hydrocarbon potential.

Future Development and Appraisal Phase

The successful testing results have established the presence of unconventional oil resources in Onshore Block 1, with BPRL expressing strong optimism about the well results. The company is now focused on the upcoming appraisal phase, where it aims to establish the economic deliverability of wells and further assess the commercial viability of the discoveries.

BPRL's positive outlook on the well results indicates confidence in the block's potential to contribute meaningfully to the company's production portfolio. The appraisal phase will be critical in determining the long-term development strategy and investment requirements for bringing these discoveries into commercial production.

Strategic Impact on Energy Security

These oil discoveries represent more than just operational success for BPRL; they align with India's broader energy security objectives. As the country continues to seek diversified energy sources and reduce import dependence, international exploration successes like this Abu Dhabi discovery play a vital role in strengthening the nation's energy portfolio.

The achievement demonstrates BPRL's growing capabilities as an international operator and validates the strategic decision to invest in overseas exploration activities. With nearly USD 166 million invested over seven years, the successful discovery showcases the company's commitment to long-term exploration and its technical expertise in challenging geological environments.

Bharat Petroleum Corporation Limited has issued an official clarification regarding contracts awarded to Technip Energies, emphasizing that these agreements constitute standard business operations within the company's operational framework.

Contract Classification

The state-owned oil marketing company has categorically stated that the contracts awarded to Technip Energies are part of routine business activities. These agreements have been classified as standard capital expenditure items within the company's financial planning and operational structure.

Business Operations Context

Bharat Petroleum has emphasized that the contractual arrangements with Technip Energies fall under normal business operations and do not represent any extraordinary or unusual commercial activities. The company appears to have issued this clarification to address potential market queries or concerns regarding the nature and scope of these business agreements.

Capital Expenditure Framework

The contracts have been positioned within Bharat Petroleum's capital expenditure framework, indicating that these agreements are part of the company's planned investment activities. This classification suggests that the contracts align with the company's strategic operational requirements and financial planning processes.

Market Communication

The clarification issued by Bharat Petroleum appears designed to provide transparency regarding the contractual arrangements and ensure that stakeholders understand the routine nature of these business operations. This communication reflects the company's commitment to maintaining clear disclosure practices regarding its commercial activities.