Indian Oil Corporation has announced a breakthrough unconventional oil discovery in Abu Dhabi's Onshore Block 1, with successful testing confirming significant hydrocarbon potential. The company expressed optimism over the well results and the potential to establish economic viability during the upcoming appraisal phase.

Discovery Through Joint Venture Partnership

The oil discovery was achieved through Urja Bharat Pte Limited (UBPL), a special purpose vehicle operating under a strategic 50:50 partnership between Indian Oil Corporation and Bharat PetroResources, which is a wholly owned subsidiary of Bharat Petroleum Corporation. UBPL secured the Onshore Block 1 exploration concession in early 2019 under Abu Dhabi's competitive bid round process.

Successful Well Testing Results

The exploration program has yielded promising results across multiple wells and geological formations:

Following successful hydrofracking operations at the XN-76 well, light crude oil was produced at the surface from the Shilaif formation, establishing the presence of unconventional oil resources in the block. This marked UBPL's first oil discovery in the unconventional Shilaif play.

Second Discovery Expands Resource Base

UBPL has reported another significant oil discovery during testing of the exploratory well XN79-02S within the same concession area. This well successfully flowed light crude oil, representing the first oil find in the Habshan reservoir within the block. The discovery will now undergo appraisal and advance towards potential development phases.

Strategic Significance and Future Development

The company highlighted that these developments represent encouraging progress and constitute a significant milestone for both parent companies as international operators. The discoveries demonstrate the technical capabilities and operational expertise of the joint venture in challenging unconventional oil exploration.

In addition to the new discoveries, UBPL is actively progressing towards the development of the existing Ruwais field and continues to evaluate other hydrocarbon prospects within the concession area. This comprehensive approach aims to maximize the potential of the entire block.

Market Performance

Indian Oil Corporation shares were trading 0.01% lower at ₹157.38 on Wednesday. The stock has declined 6% so far in 2026, reflecting broader market conditions affecting the energy sector.

Indian Oil Corporation Limited has announced significant oil discoveries in Abu Dhabi's Onshore Block 1 Exploration Concession, marking major milestones for the company's international operations. The discoveries were made through a joint venture with Bharat PetroResources Limited, demonstrating the success of India's energy companies in overseas exploration activities.

Joint Venture Structure and Concession Details

The oil discoveries were achieved through Urja Bharat Pte Limited (UBPL), a 50:50 Special Purpose Vehicle jointly operated by Indian Oil Corporation Limited and Bharat PetroResources Limited, which is a 100% subsidiary of Bharat Petroleum Corporation Limited. UBPL secured the Onshore Block 1 concession in early 2019 through Abu Dhabi's competitive 2019 Bid Round process.

Major Oil Discoveries in Two Wells

The joint venture achieved two significant oil discoveries in different geological formations within the concession area:

Technical Achievements and Operations

The XN-76 exploratory well represents UBPL's first oil discovery in the unconventional Shilaif play. Following successful hydrofracking operations, the well demonstrated the ability to flow light crude oil at surface from the Shilaif formation. These successful testing results have established the presence of unconventional oil resources in Onshore Block 1, with the company expressing optimism about the well results.

The second discovery in exploratory well XN-79 02S achieved another milestone by flowing light crude oil from the Habshan reservoir. This discovery marks the first oil find in the Habshan reservoir within the concession area, opening new possibilities for resource development.

Future Development Plans

The company has outlined its forward-looking development strategy for the concession area. For the unconventional Shilaif play discovery, Indian Oil Corporation is focused on establishing the economic deliverability of wells during the upcoming appraisal phase. The Habshan reservoir discovery will be appraised and matured for potential development as the project advances.

Beyond these new discoveries, both companies are progressing towards development of the existing Ruwais field within the concession area. Additionally, UBPL continues exploring other potential hydrocarbon prospects throughout the Onshore Block 1 concession, indicating a comprehensive approach to maximizing the block's resource potential.

Strategic Significance for Indian Energy Companies

These positive developments represent significant achievements for both parent companies of UBPL as international operators. The successful oil discoveries demonstrate the technical capabilities and operational expertise of Indian energy companies in challenging international exploration environments, particularly in unconventional resource development and traditional reservoir exploration.