Bharat Petroleum Resources (BPRL), a fully owned subsidiary of Bharat Petroleum Corporation (BPCL) signed a pact with the Supreme Council for Financial and Economic Affairs, Abu Dhabi. The agreement is for full production concession given to ‘Urja Bharat’ a special-purpose vehicle (SPV) by Bharat Petro Resources along with Indian Oil Corporation. Bharat Petro Resources is a fully owned subsidiary of Bharat Petroleum.
The production concession was given after the exploration and production concession to BPCL’s 100 per cent subsidiary (BPRL) in March 2019. The exploration phase was completed with an investment of USD 164 million. According to the concession agreement, 6,162 square kilometers of area is being covered up, and offers full concession rights to the company.
The initial exploration gave positive results in Onshore Block 1, within 38 square kilometers of Ruwais. The exploration area includes conventional undeveloped oil and gas resources. Being the first full-production concession given to an international company by Abu Dhabi’s exploration blocks, it aims to expand the hydrocarbon sector of Abu Dhabi also promoting sustainable growth.
Urja Bharat gets the equity oil rights as per the agreement that will bolster the efforts towards the energy security of India. The entry of Bharat Petroleum as an operator for the development of the production concession in the abundant region of Abu Dhabi also aligns with the portfolio balancing objective by adding production assets in prolific basins to its existing E&P portfolio.
From: financialexpress
Financial News
