IOC, BPCL Subsidiary Secure Abu Dhabi Production Concession

A wholly owned subsidiary of Bharat Petroleum Corp. and Indian Oil Corp. were awarded a production concession in Abu Dhabi by the Supreme Council for Financial and Economic Affairs on Wednesday, according to an exchange filing by BPCL.

Bharat PetroResources Ltd. and the company's exploration and production arm are partnered with IOC through a 50:50 special purpose vehicle named Urja Bharat Pte. The award follows the successful completion of an exploration phase, which began in March 2019, with a total investment of nearly $164 million, the filing said.

The concession agreement covers an area of up to 6,162 square kilometres, with UBPL granted 100% concession rights. Initial exploration in Onshore Block 1, specifically within the 38 sq km Ruwais area, has yielded positive results, identifying conventional undeveloped oil and gas resources.

This is the first full production concession awarded to an international company from Abu Dhabi's exploration blocks bid rounds. The production concession grants UBPL equity oil rights and will support India's energy security efforts.

Shares of BPCL closed 1.65% lower at Rs 340.25 per share, compared to a 0.49% decline in the NSE Nifty 50. The stock has risen 87.08% on a year-to-date basis and 51% in the past 12 months.

Shares of IOC closed 3.31% lower at Rs 169.74 per share. The stock has risen 78.30% on a year-to-date basis and 30.72% in the past 12 months.