Abu Dhabi awards consortium of two Indian oil companies production rights in Ruwais area

Dubai: The Abu Dhabi Supreme Council for Financial and Economic Affairs has awarded a production concession to two Indian oil companies - Indian Oil Corporation Limited and Bharat Petroleum Corporation Limited.

The concession was awarded to Urja Bharat Pte. Ltd. (UBPL), a special purpose vehicle featuring the two Indian companies. They will work on an area of up to 6,162 square kilometers, granting UBPL 100 per cent concession rights.

“Initial exploration efforts have yielded positive results in Onshore Block 1, specifically within the 38 square kilometer Ruwais area,” said a statement. The area includes conventional undeveloped oil and gas resources, and its development will contribute to Abu Dhabi's efforts to expand its hydrocarbon sector while promoting sustainable economic growth in the emirate.

"The award of the production concession to Urja Bharat Pte. Limited (UBPL) in the Al Ruwais area affirms our efforts to advance the emirate's hydrocarbon sector while ensuring the long-term economic prosperity of Abu Dhabi," said assem Mohammed Bu Ataba Al Zaabi, Secretary-General of Supreme Council for Financial and Economic Affairs.

"By approving and enabling international partnerships, SCFEA reinforces Abu Dhabi's position as a global leader in the energy sector.”

A natural follow up

In 2019, an exploration and concession was granted to UBPL. This then led to successful completion of the exploration phase, during which the company invested nearly $164 million.

"This concession is part of our broader strategy to enhance the resilience and sustainability of our economy, ensuring that our resources continue to create value for future generations - while supporting the UAE's vision for long-term economic growth and stability," said Al Zaabi.

A wide-ranging mandate

The Supreme Council for Financial and Economic Affairs oversees 'establishing the emirate’s policies related to financial, investment, economic, petroleum and natural resources affairs'.

The Council oversees the implementation of these policies, ensuring they 'align with broader strategies, and monitors the performance of relevant entities within the oil and gas sector, including ADNOC'.

Biggest ADNOC LNG client

This week, ADNOC had entered a long-term deal with Indian Oilc Corp. to deliver 1 million metric tonnes a year of LNG. The Indian company would become ADNOC's biggest LNG customer, with an offtake of 2.2 mmtpa. 

The LNG will primarily be supplied from ADNOC’s lower-carbon Ruwais LNG project, currently under development in Al Ruwais Industrial City. It is expected to start commercial operations in 2028. (Under the 15-year agreement, LNG cargoes will be shipped to IndianOil’s destination ports in India.)