Oil Exploration Insights: IOC and BPCL's Abu Dhabi Production Concession Win
Wednesday, 11 September 2024, 05:54
Understanding the Abu Dhabi Production Concession
The Supreme Council for Financial and Economic Affairs has awarded a significant oil exploration and production concession to a wholly owned subsidiary of Bharat Petroleum Corporation Ltd. and Indian Oil Corporation Ltd. This milestone was reported in BPCL's exchange filing on Wednesday.
Details of the Concession
- Bharat PetroResources Ltd. (UBPL) works in collaboration with IOC through a 50:50 special purpose vehicle, Urja Bharat Pte.
- This award follows a fruitful exploration phase that commenced in March 2019, with investments nearing $164 million.
- The concession spans an impressive area of 6,162 square kilometers, with UBPL holding exclusive rights.
- Initial exploration in the Onshore Block 1, particularly the 38 sq km Ruwais area, has indicated promising conventional oil and gas resources.
This concession represents the first production concession granted to an international entity from Abu Dhabi's exploration blocks bid rounds. The rights bestowed to UBPL support India's strategic efforts toward energy security.
Market Reactions and Stock Performance
- BPCL shares recently dipped by 1.65%, closing at Rs 340.25 per share, while the NSE Nifty 50 saw a slight decline of 0.49%.
- Remarkably, BPCL's stock has surged by 87.08% year-to-date, reflecting a 51% increase over the past 12 months.
- IOC's shares also fell by 3.31%, settling at Rs 169.74 per share, though showing a robust rise of 78.30% year-to-date.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.