This development follows the awarding of an exploration and production concession to UBPL in March 2019 and the successful completion of the exploration phase, during which the SPV invested nearly $164 million, according to a statement from the Indian group.

The concession agreement encompasses a total area of up to 6,162 square kilometers, granting UBPL 100% concession rights.

According to UBPL, this transaction signifies the entry of Indian Oil Corporation as an operator for the development of a production concession in the highly productive Abu Dhabi region. This aligns with the company’s strategic objective of balancing its portfolio by incorporating production assets in prolific basins to enhance its existing exploration and production (E&P) portfolio.

Initial exploration efforts have produced promising results in Onshore Block 1, particularly within the 38 sq km Ruwais area. With the award of the production concession, UBPL is now eligible to commercially develop the oil and gas resources in the region, as stated by the Indian group.

This award marks the first full production concession granted to an international company from Abu Dhabi’s exploration blocks bid rounds.

The production concession agreement provides UBPL with equity oil rights, furthering the company’s efforts towards enhancing India's energy security.